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A multiproduct firm's cost function was recently estimated asC(Q1, Q2) = 75 - 0.25Q1Q2 + 0.1Q1^2 + 0.2Q2^2
a. Are there economies of scope in producing 10 units of product 1 and 10 units of product 2?
b. Are there cost complementaritites in producing products 1 and 2?
c. Suppose the division selling product 2 is floundering and another company has made an offer to buy the exclusive rights to produce product
How would the sale of the rights to produce 2 change the firm's marginal cost of producing product 1?
Compute the equivalent annual inflation rate, based on the US Consumer Price Index, for the period 1981 (when CPI was 90.9) to 1986 (when CPI was 109.6) estimate the Consumer Price Index in 1996, working from the 1987 CPI.
Calculate your total tax liability under the 2013 federal income tax structure, assuming your income is $75,000. Assume you are single and using the personal exemption of $3,900 and the standard deduction of $6,100. Calculate your effectiv..
The following data were collected on the height (inches) and weight (pounds) of women swimmers where height is the independent variable and weight is the dependent variable. Height (x) = 68, 64, 62, 65, 66 Weight (y) = 132, 108, 102, 115, 128
What is the equilibrium level of income? Is there an inflationary or a deflationary gap? Why? What is its magnitude? What is the value of the government expenditures multiplier? What is the value of G that would move the economy to full employment ..
while costs are expected to increase from $20,000 in year 1 by $10,000 each year. If there is no salvage value at the end of 5 years, what is the annual equivalent worth of the project assuming a MARR of 12%
When the more current observations are more relevant to estimate of next period than previous observations, the naive forecasting method to employ is
Money can be deposited at 6% compounded quarterly. What end-of-quarter deposit must be made from the son's third birthday to his 18th birthday to provide $60,000 on each birthday from the 18th to the 21st.
Suppose the simplified consolidated balance sheet shown below is for the entire commercial banking system. All figures are in billions. The reserve ratio is 25 percent. A. What amount of excess reserves does the commercial banking system have.
When you were born, your grandfather established a trust fund for you in the cayman islands. The account has been earning interest at the rate of 10% per year. If this account will be worth $100,0000 on your 25th birthday, how much did your grandf..
If the material costs were $140,000 per quarter and the service charges were calculated as 20% of the material costs, what is the present worth of the contract through the 3 year treatment period at an interest rate of 1% per month
You have just purchased a new Ford Taurus for $20,000, but the most you could get for it if you sold it privately is $15,000. Now you learn that Toyota is offering its Camry, which normally sells for $25,000, at a special sale price of $20,000.
firm had demand function given by Qd=1000-10p. Its cost function given by C= 150 +20 Q A- write an equation for the inverse demand function. B- write an equation for the profit function C-if the firm wants to maximize its sales revenue.
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