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In the winter, which is the peak season for coats, the price of coats is typically higher than it is in the summer. In the case of strawberries, however, the reverse is true: The price of strawberries is lower in the peak season than it is in the winter season. How do we explain this seeming contradiction?
A local video store estimates their average customer's demand per year is Q = 7 -2P, and knows the marginal cost of each rental is $0.5. How much should the store charge for each rental if it engages in optimal two part pricing
Write a program to compute the autarky solution, and use it to reproduce Hopenhayn and Nicolini's calibration of r, as described in text.
According to Summers what is the most important event over the past 25 years in the global economy Does he see the success of China and the other emerging economies as a threat to the US Why or why not
Suppose that the current market price of VCRs is $300, that average consumer disposable income is $30,000, and that the price of DVD players (a substitute for VCRs) is $500. Under these conditions annual U.S. demand for VCRs is 5 million per year.
CrystalWater Pty Ltd and ClearWater Pty Ltd are the only producers of spring water in the local market. The market demand for spring water is given by P = 70 - Q1 - Q2. CrystalWater and ClearWater compete by choosing quantities Q1 and Q2
Consider a firm that produces military equipment. It employs 2,000 workers and pays each of them a competitive wage of $40,000 per year; its total labor costs are therefore $80 million per year. The firm also has other, non-labor costs of $30 million..
the purchaser of the metal pipe will only accept deliveries of pipe where the diameters fall in the range of 1" +/- 0.0030". Using Chebyshev's Theorem, what is the minimum percentage of acceptable metal pipe in a given shipment. (K must be in "st..
The Klein Corporation's marketing department, using regression analysis, estimates the firm's demand function, the result being Q = -104 - 2.1P + 3.2I + 1.5A + 1.6Z R2 = 0.89 Sample = 200 observations where Q is the quantity demanded, P is the price,..
A low-carbon-steel machine part, operating in a corrosive atmosphere lasts 6 yeras, and costs $350. If the part is first treated for corrosion resistance, it will cost $500 part ($150 more than just the part with no treatment) but lasts longer.
Alchem (L) is the price leader in the polyglue market. All 10 other manufacturers (follower [F] firms) sell polyglue at the same price as Alchem. Alchem allows the other firms to sell as much as they wish at the established price and supplies the ..
Design a strategy geared toward creating an affiliated group which makes Corporations A, B, P, S, and C all eligible to file a consolidated tax return.
A monopolist's demand curve is described by Q = 50 - 0.5 P The firm's cost function is TC = 10 + 2 Q a) Find the profit-maximizing quantity and price. b) If the industry is regulated in a way that requires it to set P = AC
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