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1. For the profit-maximizing firm, price markup is a markup over _______ cost, and the markup depends only on _______. a. marginal, elasticity of demand b. average, elasticity of supply c. total, elasticity of fringe supply d. fixed, production elasticity 2) There is an outward shift in the demand curve of a profit-maximizing monopolist, and the monopolist decreases output. What does the monopolist do to price?
2. The payoff matrix for FORM and GM, each of which is determining whether to offer a technical change or a styling change in a new-model product, is as follows (where H>M>L profits, subscript GM refers to GM, subscript F refers to FORD): Technical Change Styling Change FORD Technical Change Hf, Mgm Hf, Lgm FORD Styling Change Lf, Lgm Mf, Hgm Only one of the auto companies has a dominant strategy: which company? And what is its dominant strategy?
A company yearly sells 7,890 units. The cost of placing an order is $100 and the carrying costs are $2 a unit. What is the EOQ, the duration of the EOQ,
In late June the Fed lowered its federal funds rate target from 1.25 percent to 1 percent. However between mid June and early August the yield on longer term 10 year Treasury notes rose from 3.1% to over 4.3%.
Utilizing an appropriate diagram, show and explain briefly how a rise in the minimum wage could result in higher employment
After a two-year testing period, Pat prepared the patent application to patent the device, and then found that just a month earlier one of Pat's testing customers had patented the device. Pat demanded that the customer give up the patent to Pat, ..
After two years the City of Plentiful is faced with a fiscal crisis and decides that it wants its garbage back.
Perfect Competition If all the assumptions of perfect competition hold, why would firms in such an industry have little incentive to carry out technological change or much research and development What condition would encourage research and develo..
Elucidate how tax credit to a business would help to stimulate the economy.
Given that an individual has paid the initial minimum charge, do you expect her to consume less than the amount to which the minimum charge entitles her? To answer this question properly, you need to superimpose some indifference curves on the sam..
Compute the Conventional and the Modified BCR for this project. Should this investment be made.
Describe the firms optimal advertising-to-sales ratio.
In the particular assignment due this week, students explore the reasons behind regulating banks also how that regulation relates.
Within this group, the average weekly wage of the high-school graduates is 2/3 the amount of college graduates. Assume that wage elasticity and all other individual characteristics are the same across the education groups.
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