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You can either spend spring break working at home in Alabama for $200 per day for 5-days, or you can spend the week in Costa Rica where travel expenses will total $700 (food, hotel, and a plane ticket.) What is the opportunity cost of the trip to Costa Rica? Explain how you determined your answer.
The Zinger Corporation manufactures and sells a line of sewing machines. Demand per period (Q) for a particular model is given through the following relationship:
Calculate a total cost function of transport services as a function of volume of production. How you can derive now the average cost and marginal cost of production?
Explain why is advertising prevalent in many oligopolies, especially when industry demand is inelastic and illustrate your answer by supposing that with advertising, a company demand curve has price elasticity of -1.5 and without advertising,
Assume that Saudi Arabia lets other members of OPEC sell all the oil they wish at the existing price which udis set and other members accept.
Suppose you are the manager of a company that produces output in two plants. The demand for your company's product is P = 78 - 15Q, where Q = Q1 + Q2.
A New Hampshire resort offers year-round activities: in winter, skiing and other cold-weather activities; in the golf, tennis, summer, and hiking.
Suppose ZCorp has following short run production function Q = 50X - 2X^2 where X is the only variable input used by ZCorp to product its product, Q.
Consider a manufacturer with 2-factories. They can make at either factory or both. However, we need to consider the quantities that will be produced at every factory.
The hourly wage rate is $6, hourly rentail rate for capital is $8. The production function I found to be q=10K^.5L^.5 The captital if fixed at 225 hours in the short-run.
Use the concepts of economies and diseconomies of scale to describe the shape the companies long run ATC curve. Determine the concept of minimum efficient scale?
A company is practicing 1st degree price discriminaiton. The demand for the company's product is defined as QD = 20-2P. If the firm maximizes profits by selling 4 unites of output
Dominant price leadership exists when one company drives others out of the market. The dominant company decides how much each of its competitors can sell.
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