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Suppose customers are distributed on a one---directional path (e.g., to the east) as follows.
A company has to deliver a unit of its good to each customer and incurs a cost of $1 per unit and mile. Each unit needs to delivered separately.
(a) Where is the median customer located?
(b) Where is the delivery cost minimizing location and what is its delivery cost?
Elucidate how the factors determining resource demand differ from those determining product demand. Explain the meaning and significance of the fact that the demand for a resource is a derived demand. Why do resource demand curve slope downward.
Calculate the total fixed costs, total variable costs, average fixed costs, average variable costs, average total costs, as well as marginal costs.
According to the Wall Street Journal, the US Department of Commerce has "decided that display prices by Japanese companies in their home market may be artificially low. Rather than comparing US prices with Japanese prices, Commerce is now coming up w..
Assume that you are the manager of a firm. You are concerned about a potential increase in interest rates because it would reduce the demand for your products. Currently, economic growth is high, but annual inflation has increased from 3 percent to 5..
Between 1979 and 1981, the Federal Reserve sharply increased its target for the Federal Funds interest rate. This move was followed by an increase in the unemployment rate. To achieve an increase in the interest rate target, would the Federal Reserve..
Consider the case of a corn producer. This producer is a monopolist in the corn market. Since corn production uses significant amounts of fertilizers, it negatively affects the environment. Recall that, when a firm is a monopolist, it reduces its pro..
Under what situation would Gore be better off giving Bush a head start on putting mutually his presidential ticket.
You decide to open an individual retirement account (IRA) at your local bank that pays 11%/year/year. At the end of each of the next 40 years, you will deposit $4,000 per year into the account (40 total deposits). 3 years after the last deposit, you ..
The initial offering price was $34.40 per share, and the stock rose to $41 per share in the first few minutes of trading. Bostitch paid $905,000 in legal and other direct cost and $250,000 in indirect costs. What was the flotation cost as a perce..
National savings is equal to the sum of private savings and public savings. To make our notation a bit easier, we will call national savings S, private savings V, and public savings U. So in other words, If private savings 'V' = 0.75S and total savin..
Manages regularly face the choice of increasing advertising expense or reducing price to increase sales in the Oligopoly market structure. The finance department predicts dropping the price by $2.00 will increase sales by 3,000 to 33,000 units next y..
Determine the conditions that may exist for a manager of this good or service may decide to move forward with operations even with the initial costs of operations is more than the potential revenue.
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