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When McDonald's Corporation reduced the price of its Big Mac by 75 percent if customers also purchased french friesand a soft drink. The Wall Street Journal reported that the company was hoping the novel prWomotion would revive its U. S. sales growth. It. didn't. Withing two weeks sales had fallen. Using your knowledge of game theory,
what do you think disrupted McDonald's plans?
Suppose Firm Y's production function is given by the following Cobb Douglas equation
Explain why would economists be very concerned if the annual interest payments on the debt sharply increased as a percentage of GDP.
Groovy Tuesday, a clothing maker, has found that their costs can be approximated by the equation: C = 500 + 2Q2. The consulting company they hired to estimate their current demand determined that demand is characterized by:
Suppose the equilibrium price in the market is $24 and the price elasticity of demand for the linear demand function at the market equilibrium is 1.5. Then we know that: A. demand is inelastic. B. marginal revenue is $8.
Illustrate what are the three major categories of revenues for the federal government. Please comment on each and indicate their relative importance to each other.
Assume first that Apple were to sell only 4GB iPods after all,they cost the same and some consumers prefer more than less. What is the optimal price for a 4GB iPod.
Illustrate what effects would their combined actions have on GDP. Illustrate what effect would this have on your industry.
1. Suppose the French suddenly develop a strong taste for California wines. Draw a graph below to answer the following questions: a.) What happens to the demand for dollars in the foreign exchange market b.) What happens to the value of d..
Suppose you own a home remodelling company. You are currently earning short-run profits. The home remodelling industry is an increasing-cost industry. In the long run, what do you expect will happen to
managerial economics to analyze the reasons for and against the merger, also to assess the performance of the consolidated company since its completion.
Using the historical tables from the Budget of the US government, utilize the website to determine where the US government allocates its expenditures.
Joe won a lottery jackpot that will pay him $12,000 every year for the next ten years. If the market interest rates are currently 12 percent,
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