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A local business in a small college town has a major portion of their business to college bookstore. On the side they also provide services to other local businesses. The local demand is Q=200-5P. The average and marginal cost is $8.
a. Calculate output, price, and profit under the monopoly consditions they enjoy
b. To test other markets, they contemplate opening a retail outlets in several college towns where there will be other competitors. CAlculate price and output under this condition if it is perfectly competitive.
Suppose that as the economic recovery strengthened consumer expectations of annual inflation increased from 2% to 3.5 % and, at the same time, the expected real rate of return required to equate investor demand to the existing supply of 1 year.
You spendthrift cousin want to buy a fancy watch for $425. Instead, you suggest that she buy an inexpensive watch for $25and save the difference of $400 for 40years in account earning 9% interest per year.how much will she accumulate in this accoun..
To get an idea of how much those government rebate checks have spurred spending-and who's benefiting from the buying-business school professors Jonathan Parker (Northwes t ern) and Christian Broda (University of Chicago) analyzed the spending of 3..
Many factors influence a plant's uptake of boron from the soil, but one key factor is soil type. One experiment† compared plant content C of boron, in parts per million, with the amount B, in parts per million, of water-soluble boron in the soil.
A perfectly competitive firm faces a market price of $10 for its output X. It owns two plants A and B whose total costs are: TCA = 10 + 2X + .25X2 TCB = 15 + .4X + .1X2 = 15 +4 + 10 How many units should each plant produce to maximize profit at that ..
a firm has the oppurtunity to invest in a project having an initial outlay of $20,000. net cash inflows(before depreciation and taxes) are expected to be $5,000 per year for five years. the firm uses the straight-line depreciation method.
What is the four-firm concentration ratio for this industry? ___74%_ b) What is the eight-firm concentration ratio for this industry? _____98% Suppose that the distribution of sales within an industry is as shown in the table.
The following calculations help you see how the ratio of debt to GDP changes from one year to the next. Suppose that in a hypothetical country with a currency called the ducat, debt is equal to 140 trillion ducats and GDP is equal to 100 trillion ..
The Coma Chemical Company needs a large insulated stainless steel tank for the expansion of its plant.coma has located one at a Brewery that has just been closed.The brewery offers to sell the tank for $15000 including delivery. the Price is so lo..
Suppose a random experiment can be represented by 2 sets of events ,Ai and Bj, with each pair of sub events (A1 and A2, and B1, and B2) being mutually exclusive and collectively exhaustive.
Suppose the consumtion function is ( C = $500 billion + 0.9Y) and the government wants to stimulate the economy. By how much will the aggregate demand at current prices shift intially (before multiplier effects) with A 50 billion dollar tax cut
At a student café, there are equal numbers of two types of customers with the following values. The café owner cannot distinguish between the two types of students because many students without early classes arrive early anyway (i.e., she cannot p..
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