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Suppose you work for an original equipment manufacturer (OEM) who makes component pieces for a telecommunications company. The telecom company asks you for a price quote for 2,000,000 units that will require a $1,000,000 investment with marginal costs of $1. What is your bottom line in negotiations with the telecom? Suppose you agree on a price slightly above your bottom line. Immediately after quoting this price to the telecom company, you receive a faxed purchase order for one million units. What should you do?
Elucidate why these companies oppose laws allowing reimportation of drugs to the United States.
the changes that would occur to the jalapeno pepper market if suddenly Mexican food became popular, especially spicy Mexican food.
Price ceiling is the law that sets a maximum price below the equilibrium market price, but a price floor is the law that sets a maximum price above the market equilibrium price.
Considering that the beekeeper gets that amount, what range of payments will the farmer admit.
Is this commitment irreversible. Analyze Fiat's entry in term of Ghemawat's framework for analyzing commitment.
Explain and show graphically the effect on the supply and demand for Bonds in a deflationary period. What is the effect on interest rates and the quantity of bonds.
Discuss a real world example that could, or has already, caused a shift in either the AD (aggregate demand) or SRAS (short run aggregate supply) curves for the US economy, or some other country.
elling price of another product Y in dollars per unit. The inverse delivery curve. Conclude whether X also Y are substitutes or complements.
Suppose a wage increase from $25 to $27 an hour increases the number of job applicants from 52 to 66. Illustrate what is the price elasticity of labor supply.
If this price floor is implemented, how many units of pork will the government are forced to buy to keep the price at $2.25.
Derive the short run total cost, short run average cost also short run marginal cost as functions of output q.
In the short run the typical company increases its output but its total cost also rises. Hence, the effect on the company 's profit cannot be determined without more information.
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