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Your company has a customer who is shutting down a production line, and it is your responsibility to dispose of the extrusion machine. The company could keep it in inventory for possible future product and estimates that the reservation value is $250,000. Your dealings on the second-hand market lead you to believe that there is a 0.4 chance a random buyer will pay $300,000, a 0.25 chance the buyer will pay $350,000, a 0.1 chance the buyer will pay 400,000, and a 0.25 chance it will not sell. If you must commit to a posted price, what price maximizes profits?
ture capitalists provide funds to finance new companies (start-ups), usually in return for a share of the firm’s initial profits (if any). Of course, venture capitalists look to back experienced entrepreneurs with strong products (or at least product..
A large importing country utilizes a binding import quota to support its domestic price. Suppose this country experiences a 25% depreciation of its currency relative to all other countries. Construct a scenario to show how this currency depreciation ..
Although I'm specifically interested in the likely economic consequences of implementation of an official world auxiliary language, since this is only theoretical, I'd like to know what have been some economic consequences, whether positive or negati..
what compounded annual increase in cost is this? how does the increase in the cost of natural gas compare to a 3% annual rate of inflation during the same period of time?
Firms can shift their marginal cost curves to the right, resulting in higher outputs at the same or lower maximum-profit prices. This can be done by
If a hospital decides to raise prices because it needs more money, what effect does this have on patients who pay their own bills/ patients with insurance/ hospitals with insurance contracts that reimburse on the basis of costs/ hospitals with previo..
An economy has $72, to divide between Hamlet and Ophelia. Hamlet has the utility function u[H] = U[H] (m[H]) = 3m[H], where m[H] denotes his quantity of money. Ophelia has the utility function u[O]= U[O](m[O]) = 42sqrt(m[O]), where m[O] denotes her q..
Compare and contrast your chosen websites: which website is more likely to be successful than the other, and why and How well does the website personalise the experience for users?
What about 60 airplanes and 60 buses. Illustrate what can be said about the utilization of resources when 20 airplanes and 20 buses are produced.
q.auto company comprises small plant that produces speedometers exclusively. its yearly fixed expenses are 30000 and
q. 1. when discussing the maximization of utility regardless of whether you chose to work more hours or fewer when
"Which side of the market, supply or demand, that bears the burden of a tax on a good or service depends upon the relative supply and demand:"
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