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You manage Gofer Delivery Service. You rent a truck for $10 per day, and each delivery takes an hour of labor time. The hourly wage is $8.
a. Use the line drawing tool to draw a line showing the relationship between the number of deliveries (on the horizontal axis) and your total cost (on the vertical axis). Draw the lnie between zero and 20 delieries. Label this line 'Cost'.
Draw a indifference curve and degree of substition betweem goods: When the two goods are imperfect substitudes for each other, and assuming diminshing marginal rate of substitution.
Find all pure-strategy Nash equilibria in the game below. List each Nash equilibrium in (Player 1’s Strategy, Player 2’s Strategy) form.
Suppose we have a competitive market for a good with domestic demand and supply given by:
Identify and explain specific effects of price controls at given prices. Using the hypothetical information in the table on the market for gasoline, complete the following questions: Price of Gasoline (per gallon) Quantity Demanded
Two identical firms face linear demand. Market demand is given by P=30-Q.Solve for Stakelberg equilibrium prices and outputs.
Why do you suppose the federal government gives special treatment to owners of fertile farmland rather than, say, automobile mechanics?
Amaranda and Bartolo consume only two goods, X and Y. They can trade only with each other and there is no production. The total endowment of good X equals the total endowment of good Y.
Suppose the company is considering using an amount equal to 10 percent of its retained earnings to invest in one of the two mutually exclusive projects.
Determine net income for the period if beginning stockholders' equity is $19,000, dividends declared amount to $7,000, ending stockholders' equity is $37,000 and the corporation issued $1,000 of common stock.
Illustrate what is the elasticity of demand for the product that is produced by the company.
The after-tax cost is 6.5%, the cost of preferred stock is 10%, cost of common equity (in the form of retained earnings) is 13.5%. Compute Global technology's weighted average cost of capital.
Households make four kinds of economic decisions. Assume you have two households with the same income. Household A has one income earner and Household B has two income earners.
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