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Suppose that the market for sweaters is perfectly competitive. The graph below shows the cost curves of a typical manufacturer in the market. Use the blue rectangle (circle symbols) to shade the profit that the manufacturer makes at a market price of $16.
Compute the effective price reduction resulting from the coupon promotion.
Select 2 companies in the geographical location you live in and find out if they price discriminate. Why do these two companies price discriminate?
What is the real mortgage interest rate in 2001, 2002, 2003 and 2004, what are the values in 2000 dollars of Nancy's monthly mortgage payments in 2001, 2002, 2003, and 2004?
What is the equivalent present value of the following series of payments: $7000 the first year, $6500 the second year, $6000 the third year, $5500 the fourth year, and $5000 the fifth year? The interest rate is 10%, compounded annually. Answer: $2..
List the combinations of hours spent playing golf and tennis that Cindy can now afford. along with the combinations in part (a), list Cindy's marginal utility per dollar from golf and from tennis. How many hours does Cindy now spend playing golf and ..
a competing firm are the only sellers of a new product. You are engaged in an intense battle for initial market share. You both realize that the one who captures most of the market share will be the one who spends the most on advertising and promo..
Because of the War of the Ring, the price of a sword went up to $150. Calculate new wage and employment level in each sector. (c) Do Hobbits gain or lose if the price of a sword goes up to $150? (To answer the quest..
The price of a wideget increases by 90%. what effect would we expect this to have on the equilibrium wage rate of workers who make widgets.
What is the nominal exchange rate between the two countries and consumers become permanently more concerned about the future and decide to consume a smaller portion of their income.
Illustrate what is the amount of the producer surplus for Juan Carlos combined.
Describe wage determination in a labor market in which workers are unorganized and many firms actively compete for the services of labor. Show this situation graphically, using W1 to indicate the equilibrium wage rate and Q1 to show the number of ..
An industry has five firms, each with a market share of 20 percent. There is no foreign competition, entry into the industry is difficult, and no firm is on the verge of bankruptcy. If two of the firms in the industry seek to merge, this action wo..
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