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Assume that Mamma's produces frozen pizzas in a competitive market and it knows how to maximize profit. It's marginal and average total costs are shown in the curve to the right.
a) Suppose that other pizza producers are selling their product at $5.00. What price should Mamma's sell at? Why?
b) At a price of $5, what quantity of output should the company produce? Why?
Assume that nominal income is $35,000 and the price index is 1.20 in year 1. In year 2, nominal income rises to $38,000 and the price index rises to 1.25. What was the percentage change in real income from year 1 to year 2? Make your calculations ..
General creal is using a regression model to estimate the demand for Tweetie Sweeties, a whistle-shape, sugar-coated breakfast cereal for children The following(multiplicative exponential) demand function is being used. Qp=6,280P-2.15A 1.05N3.70.
For a particular good that is monopolized, the monopolist faces the following demand and cost conditions: P= 12 - 2 qd MR= 12-4qd MC= 2 q a) What price will the firm charge its customers b) Will the firm earn positive economic profits
Helen just bought a house for $250,000. Earthquake insurance, which would pay $250,000 in the event of a major earthquake, is available for $25,000. Helen estimates that the probability of a major earthquake in the coming year is 10 percent, and t..
At its current short-run level of production, a firm's average variable costs equal $30, and its average fixed costs equal $70. Its total costs at its current production level equal $34,000. a. What is the firm's current output level
Suppose a Treasury bond costs $100 and promises a payment of $105 in 1 year. A bond from the Acme Corporation costs $100 and promises $107 in a year. Assume that Acme pays the $107 with probability p. With probability 1 - p, Acme defaults and pays..
In each case, draw a budget line that shows her available choices, and indicate her best choice by adding indifference curves. Assume that Jane only cares about the number of peanuts, and not about the size of the bag.
every 6 months until he retires so that, beginning one year after his retirement, he will receive $30,000 for the next 15 years. Find the value of (A) which he should deposit every 6 months. Assume the interest rate is 8% compounded semiannually.
Interpret the following regression equation together with all the supporting statistics where Yt is the number of new cars sold (millions of units), X1t is the disposable income of consumers ($B), X2t is the price of a new car ..
Suppose that two people, Michelle and James each live alone in an isolated region. They each have the same resources available, and they grow potatoes and raise chickens. If Michelle devotes all her resources to growing potatoes, she can raise 200..
Make an in depth analysis on how your prediction of indicators Gross Domestic Product, Producer Price Index and Retail Sales or PC Retail Sales will effect the Dynamic Random Access Memory industry.
Many retirement funds charge and administrative fee equal to 0.25% on managed assets. Suppose that Alexx and Spenser each invest $5,000 in the same stock this year. Alexx invests directly and earns 5% a year. Spenser uses a retirement fund and ear..
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