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A small bottling company finds that it costs $6,000 to prepare 10,000 sixpacks of cola, and $8,000 to prepare 15,000 six-packs. If each six-pack sells for $1.20, find and plot the graphs of the total cost function and the revenue function. Plot the profit function. Find the break-even point.
At the end of that time a mild recesion slowed the development so the parties signed another contract for $190,000 per year for 2 more years. Determine the present worth of the two contracts at an interest rate of 10% per year.
Alex and Barbara will simultaneously choose to go to the beach or to go cycling without talking to one another. Alex prefers beach and Barbara prefers cycling, but they prefer to be with one another.
Use the midpoint formula to compute the price elasticity of supply for copper. (Related to Application 4 on page 529.)
What is required if firms are to have an incentive to maintain their reputations? How might the good reputation of existing firms serve as a barrier to the entry of new firms?
A California asparagus farmer is maximizing profit. The price of asparagus is $2 a box, a farm worker's wage rate is $12 an hour, and the asparagus farm employs six workers. If, when the price of asparagus increases to $3 a box,the farm hires eigh..
What are the pros and cons of such an approach? Would it work in a financial crisis? (Related to Application 2 on page 356.)
the construction of a dam will cost 1000 at time 0 500 in year 1 500 in year 2. it will be completed at the end of year
The incumbent does know its unit cost. Market demand is common knowledge to both firms. The entrant, however, does get to observe the current or pre-entry market price at which the incumbent sells its good.
What interest rate would be needed on pound securities, such as government bonds, for you to be willing to buy those securities with your dollars today and then sell them in a year in exchange for dollars?
Suppose that ranchers can buy up to a collective total of 200 cows and run them on the open range. The value of each cow after it has grazed is given by V= $2000-10C, where C is the total number of cows on the range.
Simpkins Corporation is expanding rapidly, and it does not pay and dividends because it currently needs to retain all of its earnings. However, investors expect Simpkins to begin paying dividends, with the first dividend of $1.00 coming 3 years.
Levi's has an advertising slogan: "Quality never goes out of style." Consumers can buy other kinds of jeans, including off-brands. The manufacturers of off-brand, or generic, jeans do not advertise. Assume that the average total cost of producing ..
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