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The demand for boxes of nails is estimated to be Q = 100 – 5p + 2Y, where income is measured in thousands of dollars. If p = 4, and Y = 10,
What is the income elasticity?
If the equation is then re-estimated using just dollars instead of thousands of dollars, what will be the effect on the coefficient for Y, and the income elasticity?
How would the income elasticity change if the price were reduced to $2?
discuss the best fit of the multinational firm to its worldwide industry environment and the changing role of central headquarters as an organization expands into other countries.
In recent yrs, persons also state governments have sued various tobacco companies to compensate for illness also injury allegedly cause d by cigarette smoking.
Widgets R Us uses a variety of different items to produce their world-class widgets. For each item listed, place it in the appropriate bin according to whether it would generate an implicit or explicit cost for the firm.
Consider the market for carbonated water and suppose that demand is given by D(p) = 100 – 5p There are only two firms producing carbonated water, each with the same constant unit cost c = 2. What are the equilibrium prices and quantities if the firms..
A certain waste water treatment unit process costs $50000 to purchase and install and will cost $500 per year to operate. Given an interest rate of 4.00 percent, what is the net present value of this scenario? Assume a 10 year design life. Limit answ..
A company produces two main products: electronic control devices and specialty microchips. The average total cost of producing a microchip is $300; the firm then sells the chips to other high-tech manufacturers for $550. Should the company produce co..
What is likely to happen to the supply of any good when a price ceiling is imposed?
Draw and show the change in the PPF when an outbreak of avian flu sickens millions of agricultural and industrial workers.
What short-cut can you take when calculating the AE for a cash flow that has repeating cash flow cycles?
Assume there is a market with only two profit maximizing companies (duopol) where each company has MC = AVC = 20 and no fixed costs. Also assume that market demand is Q = 100 - 0.5p. If both companies compete and chooses their given supply quantities..
Measuring performance: If public opinion surveys show that the majority of Americans regard inflation as a more serious threat than unemployment:
A factory is located next to a farmer, and sometimes emits pollution that damages the farmer’s crops that are adjacent to the factory. The crop damage can be reduced if the factory installs a scrubber, if the farmer moves her crops, or both. The foll..
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