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Suppose you are an analyst for the Coca-Cola company. An individual's inverse demand for Coca-Cola is estimated to be P = 98 - 4Q (in cents). If Coca-Cola is produced according to the following cost function TC = 1,000 + 2Q (in cents), compute the optimal price and the number of cans to sell as a single package.
Say that investment increases by 100 for each interest rate drop of 1 percent. Say also that the expenditures multiplier is 3. If the money multiplier is 5, and each 5-unit change in the money supply changes the interest rate by 1 percent, what op..
If the PAE=950+0.8Y, thus leading to a recessionary gap of 50, relative to potential output of 4800. Suppose that in this economy, the natural rate of unemployment is 5%. What will the actual rate of unemployment be after the rescessionary gap app..
a city has decided to build a softball complex and the city council has already voted to fund the project at the level of $800,000 (initial capital investment) the city engineer has collected the following financial information for the complex pro..
An estimate of the demand function for household furniture produced the following result F= 0.0036Y1.08R0.16P-0.48 p=0.996 where F= furniture expenditures per household. Y= disposable personal income per household.
howard bowen is a large-scale cotton farmer. the land and machinery he owns has a current market vlaue of $4 million. bowen owes his local bank $3 million. last year bowen sold $ 5 million worth of cotton. his variable operating costs were $4.5 mi..
1. The three fundamental economic questions of what, how, and for whom: a-exist because of scarcity. b-are much more serious in a socialist system. c-are not serious in a capitalistic system. d-are not relevant in the industrialized world of today.
Now suppose the same game is played with the exception that Player A moves first and Player B moves second. Using the backward induction method discussed in the online class notes, what will be the outcome of the game
Suppose Zia spends her time picking berries and apples. Her production set is described by the equation , where is the number of berries and y the number of apples.
(a.) Is demand elastic or inelastic in the $6-$8 price range How do you know (b.) If the table represents the demand faced by a monopoly firm, then what is that firm's marginal revenue as it increases output from 1700 units to 2300 units
Suppose the natural rate of unemployment in 2005 is 5% and the actual rate of unemployment is 9%. Use Okun's law to determine the size of the GDP gap in percentage-point terms. If the potential GDP is $500B in that year
quantity of Chrysler Crossfires sold annually, PC is the price of a Chrysler Crossfire, M is average household income, PBMW is the price of BMW's 330i sports sedan, and PP is the price of Porsche's Boxster S sports car. The marketing team at Chrys..
Now assume that intermediaries come from a competitive market with and equilibrium price of $8 per unit for their services, that is, any buyer or seller who wants an intermediary's services must pay $8 for them. What is the maximum per unit that s..
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