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Question: Sara is a dot.com entrepreneur who has established a Web site at which people can design and buy sweatshirts. Sara pays $1,000 a week for her Web server and Internet connection. The sweatshirts that her customers design are made to order by another firm, and Sara pays this firm $20 a sweatshirt. Sara has no other costs. The table sets out the demand schedule for Sara's sweatshirts.
Calculate Sara's profit-maximizing output, price, and economic profit.
what impact would a change that shifts an economys production possibilities curve outward have on the long run
The total operating revenues of public transportation authority are $100 million while its total operating costs are $120 million. The price of a ride is $1, and the price elasticity of demand for public transportation has been estimated to be..
Firms have tried a number of different strategies to reduce the negative effects of competition on their ability to earn economic profits. What is the strategy is most desirable from the economic efficiency and consumer well being
The annual holding cost per unit is $2.50, and the cost to place an order is $50. Suppose demand for TricFlexers doubles to 32,000. Does the EOQ also double ? Explain what happens.
Suppose that Country A imposes a tariff on imports; show graphically what happens to the terms of trade PT PC .
Suppose the market supply function is Qs = 1.2P2 - 0.5PE - 10PL, where PE and PL are price of energy and labor, respectively. Calculate the own price elasticity and cross price elasticity of energy and labor if P = 20, PE = 70, and PL = 40.
sepracor inc. called its convertible debt in 2007. assume the following related to the transaction the 11 10000000 par
Consider the following utility function-find the hicksian deman function for x and y, find the expenditure function, without solving the utility maximization problem, recover the indirect utility function and the Marshallian demand functions.
Limited funding may lead scientists to research one topic instead of another.legislators may create new laws about the use of natural resources based on the recommendations of scientists.
Monopoly, special case. A monopoly drug company produces a life-saving medicine at a constant cost of $10 per dose. There are 100 patients who need to take.
Consider a game in which there are two players, A and B. Player A moves first and chooses either Up or Down. If A chooses Up the game is over, and each player gets a payoff of 2. If A moves Down then B gets a turn and chooses among Left and Right. If..
The President of the United States decides to eliminate terrorism in the Middle East and launches a massive ‘‘first strike'' against terrorist nations.
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