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Explain why a rational consumer who has diminishing marginal utility for a good would not consume an additional unit when it generates negative marginal utility, even when that unit is free.
Based on the following graph (which summarizes the demand, marginal revenue, and relevant costs for your product), determine your firm’s optimal price, output, and the resulting profits for each of the following scenarios: You charge the same unit pr..
If a competitor increases its price what is the likely impact? Please support your argument using the economic principles you have been reviewing. Quick Profit sells box juice for $7.50 and has an demand function of: Q = 300 - 20P. At the present pri..
This question addresses the issue of incentives for innovation
Define the short-run break-even price. What are economic profits at this price? Why would a firm be willing to operate permanently at this price?
At 3% unemployment which is likely to happen The Federal Reserve should:
What are the problems associated with using the discounted payback period to evaluate cash flows? Please answer the following question.
Discuss two ways in which the economy has been enablsharing ed by the advancement of Internet-related technology.
Suppose the jeans industry is an oligopoly in which each firm sells its own distinctive brand of jeans, and each firm believes its rivals will not follow its price increases but will follow its price cuts. Draw and explain the demand curve facing eac..
What would the equilibrium prices and quantities be if the market was competitive?
In some states, mining for coal leaves large amounts of rubble, which poses flooding problems; causes land damage also is unsightly.
Dan Unowsky manages a production group in a PC repair shop. He has noticed that the speed of repair is based on each worker doing one task. However, if an employee is out sick, then the entire repair process slows down.
In its rivalry with Westinghouse, Gneral Electric instituted a "price protection" plan. This plan stated that if GE lowered its price, it would rebate the price difference to its past customers. Show that this plan makes collusion between GE and West..
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