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Suppose that a firm is currently charging $45 for its product. The firm knows that its marginal cost of producing the product is $25, and it believes that the elasticity of demand for the product (at least at its current price) equals 3. Given this belief, does it appear that setting its price at $45 is a profit-maximizing decision? If not, and if the firm's goal is indeed to maximize its current profit, should the firm raise or lower its price?
a firm is considering bidding for the franchise to sell lemonade and corndogs at the illinois state fair. it estimates
What about lowering interest rates and increasing money supply (i.e., monetary policy) If you were the chair economic advisor to the President of the United States, what would be your advice to him? What does the Scripture have to say about money
question 1 suppose the expected market demand for tickets to the australian open golf tournament to be held in
What is the cost of using this machinery for one year? How would your answer be different if the machinery had not yet been purchased?
1. pritchett and summers argue that income per capita is strongly and positively related to health status when viewed
What is the amount of money that will be raised and invested and what is the profit maximizing price that Joe should charge for his services?
Yearly demand and supply for the Entronics corporation is given by: Qd= 5,000 +0.5I+0.2A-100P and Qs=-5000=100P where Q is the quantity per year,
Use the following information about an agricultural market for cotton to answer this set of questions. The market demand curve for cotton is given by the equation P = 200 – .005Q while the market supply curve is given by the equation P = .005Q where ..
Why does the assumption of independence of risks matter in the example of insurance? What would happen to premiums if the probabilities of houses burning were positively correlated? Can you think of a situation where they might be negatively corre..
Suppose that a system of unemployment compensation isinstituted in the country, and the average duration of unemploymentrises for two months: a )What will be the unemployment rate for this economy now
suppose that gunk is a pollution by-product of manufacturing computer processors. environmental activists propose
suppose that in the year 2000 a typical social security recipient consumed only food and housing. the price of housing
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