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The price-quantity relationship has been estimated for the new prostate cancer blood test: Q = 4,000 – 20 × P. Use a spreadsheet to calculate the quantity demanded and total spending for prices ranging from $200 to $0, using $50 increments. For each $50 drop in price calculate the change in revenue, the change in volume, and the additional revenue per unit. Call the additional revenue per unit marginal revenue.
Suppose the hotel in the lecture example raised its price from $30 to $30.50. With the new price, the hotel expects 96 guests to arrive 5% of the time, 97 guests 10% of the time, 98 guests 20% of the time, 99 guests 30% of the time, 100 guests 25% of..
Consider a small country that is an exporter of good X. Suppose the government imposes a tariff on imports of good X. Using one graph, showing demand and supply of good X in the home country, carefully illustrate the effect of a tariff imposed by the..
Presumptuous the demand curves were linear or graphically demonstrate your reasoning.
What is the market equilibrium price and the price each firm gets for its product - What is the equilibrium market quantity and the quantity each firm produces?
Name and discuss the four major theories that address the term structure of interest rates. In your discussion, indicate the strengths and weaknesses of each of the theories and which theory or theories appear to be the best accepted as explanations ..
To preserve capital in a declining stock market, a portfolio manager should:
Illustrate what is the value of goods and services purchased by the government of Numidia.
Suppose you live in a community that relies on clean drinking water from a nearby lake. Lately you have noticed that the quality of the water has suffered as pollution washed into the lake. Is this a market failure? Explain.
A piece of equipment that was purchased two years ago for $59,000 was expected to have a useful life of 5 years with a $5,000 salvage value. Since its performance was less than expected, it was upgraded for $20,000 one year ago. Increased demand now ..
Suppose Jane has a one third chance of becoming disabled in any given year. If she does become disabled, she will earn $0. If Jane does not become disabled, she will earn her usual salary of $60,000. Jane has the opportunity to purchase disability in..
A practice would like to allocate their resources optimally between the orthopedic and rheumatology departments. The revenues per case generated by orthopedics and by rheumatology are $2,000 and $1,000, respectively.
You purchase a residential home in July 10th 2013 that you are going to use as a rental property. You paid $250,000 and the land was valued at $50,000. What is your allowable TAX depreciation for 2013. You purchase a dump truck for $75,000 that you e..
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