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Suppose your marketing department does a survey of potential users and finds that these users place the following values on the two versions of your software.
Software Version Home Users Commercial Users
Full featured version $175 $225
Disable version $150 $200
Illustrate price as well as quantity will maximize revenue. Elucidate the total revenue and price elasticity at this point.
The growth rate of population in Country A is greater than in Country B. According to the Solow model, which country should have a higher growth rate of output per worker?
A monopolist has a constant marginal also average price. Compute the monopolist's profit maximizing quantity, price also profit.
Discuss how international trade affects U.S. economy. Explain how foreign exchange rates are determined.
Elucidate why is it that market leaders and monopolies generally acquire rather than develop new technology.
Find is the equilibrium price for hotdogs and graph and what are Qd and Qs when a hot dogs costs $5.00. What can be inferred?
Compute the expected stock price for each firm using the constant growth dividend discount model.
Describe how a change in investment can have big impact on GDP causing a nationwide slump. Recall that investment is "small" relative to the entire economy.
Industry studies often suggest that firms may have long - run average cost curves that show some output range over which there are economics of scale and wide range of output over which long- run average cost is constant.
Suppose that interest parity does not hold exactly, but that the true relationship is R = R* + (Ee - E)/E + r, where r is a term measuring the differential riskiness of domestic versus foreign deposits. Suppose a permanent rise in domestic governm..
Find out the average total cost and average variable cost as a function of the level of output. Assuming the firm has the same cost curves in the long-run for q>0 and C (0) =0, how much will it produce in the long-run?
Find out the marginal utility for each chicken piece. What is the meaning of the marginal utility of the 11th piece.
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