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Electrocomp%u2019s management realizes that it forgot to include two critical constraints (see Problem 7-14). In particular, management decides that to ensure an adequate supply of air conditioners for a contract, at least 20 air conditioners should be manufactured. Because Electrocomp incurred an oversupply of fans in the preceding period, management also insists that no more than 80 fans be produced during this production period. Resolve this product mix problem to find the new optimal solution.
Political scientist Garry Wills stated if leader is just an expediter of what other people wish, a resource for their use, the people are not being led but serviced.
Treasury funds national debt by a mix of T-bills, T-notes, and T-bonds with maturities of 10-30 years. During President Clinton's administration Treasury proposed that by issuing more T-bills
Use the economic perpective to explin why someone who isnormally a ligh eater at a standard restaurant may become somewhat of a gullton at a buffet-style restaurant that chares a single price for all you can eat.
If a country desires to have stable prices (or low inflation), why not simply pass a law that prohibits firms from changing prices? Elucidate pros and cons associated with this case.
Discuss balance of fixed and variable costs for organization. Explain how has Internet changed this balance for organizations.
Suppose the demand for loanable funds was stable but the supply fluctuated from year to year. Elucidate what might cause these fluctuations in supply.
If an economy experiences increasing prospect costs with respect to two goods, then the production-possibilities curve between the two goods will be.
What would be its (cost-based) markup ratio? Now suppose the demand curve the firm faces is:Q = 3000 - 50 P. Is the firm going to achieve its profit goal? Explain.
Using two-part pricing , what will be the entry (membership) fee? What will be the per-unit fee? Compute the profit earned from a typical consumer with two-part pricing. Hint: same as perfect price discrimination profit.
Illustrate what would be a reasonable breakdown between private sector vs. public sector spending for an increment of $1. Are we talking $0.8 from private and $0.2 from public or would you suggest a bigger swing either way.
Illustrate what relationship must hold between x and p so that A second order stochastically dominates B.
Using two-stage least squares, estimate the demand equation in GRETL. Using two-stage least squares, estimate the supply equation in GRETL.
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