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Suppose you are running a factory, producing anvils that requires steel as a raw material. Your costs are predominantly human labor (h), which is $20 per hour for your workers, and the steel itself (s), which runs for $160 per ton. Suppose your revenue is loosely modeled 21 by the following equation: 100h3 s3 . If your budget is $10,000, how would you maximize revenue? Solve this problem using the Lagrangian method.
1) Discuss possible extraneous variables and how they could be controlled.
Isabel's preferences for consumption C and leisure L can be expressed as U(C, L) = (C – 120) x (L – 90), implying that her marginal utility of leisure is (C – 120) and her marginal utility of consumption is (L – 90). What is her marginal rate of subs..
Emotional branding is becoming an important way to connect with customers and create differentiation from competitors. How can companies create emotional branding to position their brands? What are some examples of companies (other than from the text..
Explain the difference between a charge in demand and a change in quantuty demanded.
What is the difference between economics and accounting profit? Why is a distinction between them important?
Why is it that firms can earn profits in the long run in monopoly and oligopoly but not in monopolistic competition and perfect competition? What can firms do in monopolistic competition or perfect competition to make the short run last as long as po..
Market approval in the US for new pharmaceutical products in a long, arduous, and expensive process. Once approved, patent protection keeps substitute products from entering for some years. if the demand for a particular product is stable, what would..
The cross-elasticity of demand between American eagle and Hollister is 2.3. What does that tell us about the relationship between these two stores?
You should try to find an article (or articles) that discusses aspects of the market or market conditions that the firm faces. If possible, also find a SWOT (strengths, weaknesses, opportunities and threats) analysis for your chosen firm.
What are some ways to make a distinction between an Oligopolistic Market and a Market identified as having Monopolistic Competition?
Compare and contrast expansionary and contractionary fiscal policy, be as detailed as possable
Describe a situation in which a poor alternative was selected because there was a poor search for better alternatives.
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