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Based on market research, a film production company in Ectenia obtains the following information about the demand and production costs of its new DVD:
Demand: P=1000-10QTotal Revenue: TR=1000Q-10QZMarginal Revenue: MR=1000-20QMarginal Cost: MC=100+10QWhere Q indicates the number or copies sold and P is the price in Ectenian dollars.
Find the price and quantity that maximizes the companies profit.
A company has an annual requirement for 150,000 parts, which cost $125 each. The parts require processing having a $4,000 setup cost. Each part occupies 0.5 sqft of floor space in the factory. Floor space has a total cost of $12.50 per square foot..
Consider an economy in which taxes, planned invest-ment, government spending on goods and services,and net exports are autonomous, but consumption and planned investment change as the interest rate changes.
if nominal output rises from $13.5 billion to $14 billion and the GDP deflator rises from 100 to 105, a)what is the percetage increase in nominal output b)what is the percentage increase in the price index
A person buys a $1,000 face value bond 2 years after its issue. He intends to keep it until its maturity date, which is 18 years from now. This bond pays 6% annually. What price can he pay now for the bond so that his investment earns 8%?
At present, Zales has 100 rubies, 120 sapphires, and 70 hours of jeweler's labor. Extra rubies can be purchased at a cost of $100 per ruby. Market demand requires that the company produce at least 20 type 1 rings and at least 25 type 2.
a firm has the oppurtunity to invest in a project having an initial outlay of $20,000. net cash inflows(before depreciation and taxes) are expected to be $5,000 per year for five years. the firm uses the straight-line depreciation method.
Domino Pizzas decides to raise their price of their large Meatlovers supreme from $9.00 to $9.50. Their sales fall from 500 meatball subs to 460. Using the midpoint (or arc) formula, the elasticity of demand for Meatlovers supreme in absolute valu..
What is the minimum increase in income necessary for the consumer to be as well off under price px = 1, py = 2, as she/he was at prices px = 1, py = 1 Explain why the percentage increase is smaller than the increase in the CPI for the consumer
On the basis of the information regarding the risk involved in the two projects, you came up with the following probability distributions for the projects: Project A Project B Probability Net Cash Flows ($) Probability Net Cash Flows ($) 0.3 8,100 ..
You are planning to save for retirement over the next 30 years. To do this, you will invest $ 700 a month in a stock account and $ 300 a month in a bond account. The return of the stock account is expected to be 11 percent, and the bond account wi..
Workers in Wet Seal and Forever 21 stores are considering forming unions in each store. The potential unions have information on labor demand. For Wet Seal, when the wage rises from $8 to $10, Wet Seal will reduce labor demand from 800 to 700.
The older yourt factory has reduced the price of its popular Mmmm Sundae from $2.25 to$1.75. As a result the firm's daily sales of these sundaes have increased from 1,500/day to 1800/day. Compute the arc price elasticity of demand over this price a..
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