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Construct a tutorial that shows users of it how to apply marginal cost and marginal revenue concepts to business operations with the goal of maximized profitability.
In a particular industry, labor supply is ES=20+w and labor demand is ED=60−4w, where E is the employment level and w is the hourly wage. What are the equilibrium wage and employment if the labor market is competitive? What is the unemployment rate?
Demand for a softback managerial economics text is given by Q=20,000-300P. The book is initially priced at $30. Compute the point price elasticity of demand at P= $30. If the objective is to increase total revenue, should the price be increased or de..
What should be the hedge ratio in the use of gasoline futures to hedge its exposure - what is the company's exposure measured in gallons of Liquid X?
Predict three potential effects of such an economic system on the societies in which the system is involved. Provide a rationale for your response.
Mid-America Shipping is considering purchasing a new barge for use on its Ohio River routes.
Generational accounting techniques (recall Chapter 4) suggest that future income tax rates will be higher than current tax rates. How should this information affect the savings rate? How should it affect the relative appeal of Roth versus traditional..
For the purpose of these exercises, let the firm's profits be given by P(x) = 20x - x^2, and let damages be given by D(x) = 2x^2. Producer surplus, which equals profits, plus the net effects of any taxes, subsidies, or side-payments agreed to under t..
What is the opportunity cost of Josephine's trip to the wedding
A local newspaper headline? blared, "Bo Smith Signed for? $30 Million." A reading of the article revealed that on April? 1, 2014, Bo? Smith, the former? record-breaking running back from Football? University, signed a? $30 million package with the Da..
Two physical therapy firms want to merge. The price elasticity of demand for physical therapy is -0.40. Firm A has a volume of 10,400, fixed costs of $50,000, marginal costs of $20, and a market share of 8%. What are the total costs, prices, revenues..
Illustrate what price should the firm charge if it wants to maximize its profits in the short run. What arguments can be made for charging a price higher than this price.
If deposit insurance were abolished, elucidate how would these change incentive structure facing deposit theory institutions.
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