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You are the owner of a local honda dealership. Unlike other dealerships in the area, you take pride in your "no haggle" sales policy. Last year, your dealership earned record profits of $1.5 million. However, according to the local Chamber of Commerce, your earnings were 10 percent less than either of your competitors. In your market, the price elasticity of demand for mid-sized honda automobiles is -4.5. In each of the last 5 years, your dealership has sold more mid-sized automobiles than any other honda dealership in the nation. This entitled your dealership to an additional 30 percent off the manufacturer's suggested retail price (MSRP) in each year. Taking this into account, your marginal cost of a midsized automobile is $11,000. What price should you charge for a midsized automobile if you expect to maintain your record sales?
Robot X has a first cost of $84,000 an annual maintenance and operation (M&O) cost of $31,000, a $40,000 salvage value, and will improve net revenues by $96,000 per year. Robot Y has a first cost of $146,000 an annual M&O cost of $28,000, a $47,00..
Suppose that benefit rules are changed so those disabled workers who take jobs that pay less than $X per day receive a benefit that brings their total daily income (earnings plus the DI benefit) up to $X. analyze the work-incentive effects of the c..
Assuming paper is sold in a competitive market, what is the market price? how many tons of paper will be produced per year at that price? what is the efficient annual output of paper? how can a corrective tax achieve efficiency?
Assume that the total cost function for a single firm in a purely competitive industry is given by following equation:
Assume you do not think that the statement does have any credibility. Illustrate what is the expected impact of the resulting policy on your business.
Illustrate what are the disadvantages of forming corporate joint ventures between multinational corporations in the home and host country.
Describe and graph (using AD/AS framework) an example in today's news of fine tuning economy. Assume the MPC in an economy is 0.8, the APC is 0.8 and disposable income is $9 billion. If disposable income increases to $14 billion, what is the new le..
Illustrate what happens to the supply curve and the equilibrium point when a new technology improves a production process.
The supply curve S1 and the demand curve D indicate initial conditions in the market for gasoline. A $.60-per-gallon excise tax on gasoline is levied, which shifts the supply curve from S1 to S2. Which of the following states the actual burden of ..
Globalization and global trade have led to increased competition in world markets and increased allocation of scarce resources. Is it accurate to say that this is contributing to increased consumer surplus and reductions in inflationary pressures.
Elucidate the price should you charge for a midsized automobile if you expect to maintain your record sales.
Imagine two naton , Glacierland, and Swampland. Glacierland is producing everything at a lower absolute cost than Swampland. If the two countries trade what is the reason.
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