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The demand for Wanderlust Travel Services is estimated to be:
Qdx = 22,000 - 2.5Px + 4Py - 1M - 1.5Ax
Ax represents the amount of advertising spent on X and M represents consumer income. The other variables have their usual interpretations. Suppose the price of good X is $450, Good Y sells for $40, the company utilizes 3,000 units of advertising and consumer income is $20,000.
Calculate the own price elasticity of demand at this values of prices, income, and advertising.
Two machines are being considered for improving a process. Machine A has a first costs of $300,000 and annual maintenance and operating costs (M&O) of $100,000 and it will result in costs reductions of 180,000 per year. Determine which Machine should..
The Central Bank of Muji wishes to eliminate the recessionary gap while expansionary monetary policy. The central bank can do so by stimulating consumption and planned investment.
Licensing proprietary technology to foreign competitors is the best way to give up a firm's competitive advantage. Discuss whether you agree or disagree with this statement.
Which of these can be a value turnoff for customers?
What would the impact of a virus that infected the midwestern corn crop on the price of wheat and the quantity of of corn. Use two graphs one for corn and one for wheat.
Suppose that the U.S. government decides to levy a tax (such as an excise tax) on cola consumers. Before the tax, 20,000 cases of cola were sold every week at a price of $8 per case. after the teax,
Take a position on whether or not companies benefit from using a structured profit approach to calculate their profits. Provide an explanation of your position with at least two examples or scenarios of the use of such an approach.
Explain which it would not be optimal for Firm 1 to make the investment if there were no threat of entry.
Consider the following model of international migration. The potential migrants originate in country 0, the source country. Suppose the distribution of skills in the source country uniform over the closed interval [1, 100]. That is, worker 1 has 1 ef..
In your own words, outline several aspects of the system of checks and balances. What are some responsibilities that are unique to each branch, and where do responsibilities overlap? What was the intention behind this setup?
Sam has preferences for consumption goods (C) and time spent on leisure (L). The utility function is u(C,L) = CL. The household also has a home production technology summarized by a production function. How much time will Sam spend in leisure? How ma..
Suppose the market for wine in the U.S is characterized by : Calculate the deadweight loss if the U.S Imposes a prohibtive tariff per unit of imported wine.
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