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A suntan lotion company is interested in expanding to another market. In Miami, there is a 60% chance of selling 5,000 units at a $5 profit/unit, a 20% chance of selling 4,000 at a $8 profit/unit, and a 20% chance of losing $5,000. In Las Vegas, there is a 70% chance of selling 5,000 units at a $6 profit/unit, a 20% chance of selling 4,000 at a $7 profit/unit, and a 10% chance of losing $5,000. Finally, in San Diego, there is a 40% chance of selling 8,000 units at a $9 profit/unit, a 20% chance of selling 4,000 at a $9 profit/unit, and a 40% chance of losing $20,000. To enter each market there is a cost of $15,000. What market should the company enter?
Consider the following distribution of income in a 12 person economy, with the modern urban wage=3, the traditional rural income=1 and the informal urban wage = 2: (1,2,3,1,2,3,1,2,31,2,1). the poverty line is at 1.3. What is the level of absolute po..
In 2002 business week listed apple Calculator as having one of the worst board of directors: founder Steve jobs owns just 2 shares in the company.
Suppose a country has a production function that exhibits constant returns to scale. Starting from an initial steady state with population growth rate n and a rate of capital depreciation Delta, the country is devastated by an epidemic that quickly k..
Process mapping has been discussed several times during this course. Draw a SIPOC diagram of the orientation process at a former or current organization you’ve been a part of. Indicating which are VA, NVA and BNVA. What are some characteristics of a ..
Consider the economy of Hicksonia. The money demand function in Hicksonia is (M/P)^d = Y - 200r. The money supply M is 3000 and the price level P is 3. Graph the LM curve for r ranging from 0 to 8. Find the equilibrium interest rate r and the equilib..
He explains that the firm that has come up with the idea decided to start the coffee push cart in either Cleveland, Ohio, or Houston.
elucidate the effects of such expectations on the following variables today: output (Y), nominal interest rate (i), exchange rate (E), investment (I) and trade balance
What is their goal, and illustrate what decision criteria do they use in trying to reach that goal.
Analyze the forms of aid to developing nations and determine which have the greatest and least amount of impact on a country during a natural disaster.
Recall our example of an investment of $100,000 in research that yields a pioneering invention that has no commercial value, and a subsequent investment of $50,000 in development that yields an improvement that has commercial value of $1 million.
Explain why Consumer Preferences may influence the own price elasticity of demand for a commodity.
After set up there is a marginal cost of $ 4 for each CD. Set up the total, average and marginal revenue functions for GDM. Write out the company TM s total average and marginal cost functions.
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