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Maintained markup is 39%, net sales are $52000, and reductions are $2500. What are the gross margin in dollars, and the initial markup as a percentage? Explain why initial markup is greater than maintained markup.
Your annual fixed costs are $50,000, marginal costs are $10 per unit, and you are producing 50,000 units per year. In the short run, what is the minimum acceptable price level before it makes economic sense to shutown
Suppose the number of employed people in an economy is 121,166,640. The unemployment rate in this economy is 10.4 percent, or .104, and the labor force participation rate is 72.5 percent, or .725.What is the size of the labor force
Suppose that the most popular car dealer in your area sells 10 percent of all vehicles. If all other car dealers sell either the same number of vehicles or fewer, what is the largest value that the Herfindahl index could possibly take for car deal..
A consumer purchases two goods, food (F) and clothing (C). Her utility function is U(F,C) = FC + C; thus, MUf = C and MUc = F + 1. The price of food is Pf , the price of clothing is Pc , and the income of the consumer is I.
The invers demand curve for a monopolist changes from P=100-2Q to P=120-2Q while the marginal cost of producing remains unchanged at a constant $20. what happens to the deadweight loss
A minor league baseball team is trying to predict ticket sales for the upcoming season and is considering changing ticket prices. a. The elasticity of ticket sales with respect to the size of the local population is estimated to be about 0.7.
Spookmart and Scaretown are the only two halloween costume stores in town. Both the stores are wondering how many Miley Cyrus twerking costumes to order. Each costume costs $2 from the supplier (i.e., marginal cost for the stores is $2) and market..
Used Car Prices an automobiledealer finds that the average price of a previously owned vehicleis $8256. He decides to sell cars that will appeal to the middle60% of the market in terms of price. Find the maximum and minimumprices of the cars the..
The Crockett Land Winery must replace its present grape-pressing equipment. The two alternatives are the Quik-Skwish and the Stomp-Master. The annual operating costs increase by 12% each year as the machines age. If the interest rate is 9%, which ..
You are an economic consultant to a city that just imposed a payroll tax of $1 per hour of work. This payroll tax is paid by workers through a payroll deduction: For each hour of work, the employer deducts $1 and sends the money to the city govern..
The following data represent the daily demand (y in thousands of units) and the unit price (x in dollars) for a product. Daily Demand (y) Unit Price (x) a. Compute and interpret the sample covariance for the above data. b. Compute and interpret the s..
Frisbees are produced according to the production function q = 2K+L where q =output of frisbees per hour, K =capital input per hour, L =labor input per hour. a) If K = 10, how much L is needed to produce 100 frisbees per hour
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