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Calculating the optimal price using the arc formula for elasticity.
If the price is $15 the company sells 27 units. If price is $12, the company sells 42 units. The company wants to earn a 20% return on sales. ATC=MC=$10. How do I determine the optimal price using the linear approximation method, cost plus pricing and mark-up pricing. How does the arc formula for elasticity factor in to these equations?
Consider the Bertrand model with no product differentiated in which each firm has a positive and fixed sunk cost F and zero marginal cost. What are the equilibrium prices and profits? Illustrate your result on a proper diagram.
The following is a list of figures for a given year in billions of dollars. Calculate the GDP and NI.
Explain International Monetary System
What is Bill's opportunity cost of producing one hat, In which of the two activities does Mary have a comparative advantage.
You are trying to decide whether to buy some laptop computers for your business in either Canada or in United States. Looking at identical machines on the Dell Canada and the Dell US web sites, you find that they sell for US $2000 (US dollars) in ..
Explain how does the Central Bank measure the money supply in the contary. Does the Central Bank have an interest rate policy.
Explain what would happen to the demand for Motorola picture phones if the price of digital cameras rose
A severe drought has make a shortage of tomatoes. Jim makes his own barbeque sauce. One of the main ingredients of his sauce is fresh tomatoes.
The California Instruments Corporation, a producer of electronic equipment, makes pocket calculators in a plant that is run autonomously. What price should the manager charge for the calculators?
What money supply must the Bank of Canada set next year if it wants to keep the price level stable? What money supply must the Bank of Canada set next year if it wants inflation of the ten percent?
Elucidate at what price also quantity will marginal revenue be zero. At what price and quantity will marginal revenue be maximized.
According to law of comparative advantage , who should produce wheat and who must produce Cd palyer? Evaluate all relevant opportunity cost.
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