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Suppose that Tommy Hilfiger's marginal cost of a jacket is a constant $100 and at one of the firm's shops, total fixed cost is $2,000 a day. The profit-maximizing number of jackets sold in this shop is 20 a day. When the shops nearby start to advertise their jackets, this Tommy Hilfiger shop spends $2,000 a day advertising its jackets, and its profit-maximizing output jumps to 50 jackets a day.
Can you say what happens to Tommy's markup and its economic profit? Why or why not?
Suppose that a mutual fund has an annual rate of return that is normally distributed with a mean of 10% and a standard deviation of 4%. What is the probability that the annual return in a given year will be negative
Calculate the total revenue and total economic profit for this pizza shop at each level of output. Calculate the pizza shop's marginal cost and marginal revenue at each level of output.
Graph the new long-run average cost curve, and compare its position with the curve in that question.
Since you are not an expert on this type of equipment, you hire a consulting firm to make recommendations. The consultant charged you $1,500 and recommended the purchase of the latest model from Equipment Corp. of America.
Explain how to quantify the gains
In particular, discuss how vertical integration and repeated interactions between suppliers and producers might change the results discussed in that section. How would you model each of these
In general terms, explain why XML is important for database processing.
What is fair insurance? Why will a risk-averse consumer always be willing to buy full insurance that is fair?
The state highway department is considering six routes for a new highway. Listed below are the estimated construction costs, maintenance costs, and the user cost associated with each route. Route Construction Costs Annual Maintenance Costs Annual U..
What is the breakeven level of hour of work under the program I have gotten help on the first part of the question and found that the break even level of earnings was $140 and he would work for 20 hours/week.The other part
Construct a Marshallian demand function in which one good is a Giffen good. Construct a demand function in which two goods i and j are substitutes but ∂xi/ ∂pj
Which meaning do you think is the newer one? (You may find this question easier to answer after you've figured out what the root of ossify is. Remember that there's an appendix of word elements at the back of your textbook!) Has the newer meaning ..
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