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Kiran company is major producer if steel. Management estimates that the demand of the company's steel id given by the equation
Qx = 5000 - 1000 Px +0.1 I + 100 Pc
Using this information, the company's manager want to determine what effect a price increase would have on total revenue. Evaluate how sale of steel would change during a period of rising incomes. Assume the probable impact of competing producers raise their prices. Assume that the initial claues of Px, i, pc are $1, $20,000 and $0.80 respectively.
Suppose the consumtion function is ( C = $500 billion + 0.9Y) and the government wants to stimulate the economy. By how much will the aggregate demand at current prices shift intially (before multiplier effects) with (a) A 50 billion dollar increa..
Why would you as a CEO of a business choose to pay your workers more and give them better benefits than your competitors?
l. How can you tell that this is not the long-run least cost of producing this level of output m. How would the firm adjust its labor and capital usage to produce this level of output at least cost in the long-run
What is the net effect on the money supply in the economy? Show your work. Assume instead that Sammy uses the $10,000 he receives to pay back a loan from Bad Boys Bank. $8,000 goes to repay the loan itself, and $2,000 represents his Interest payme..
Why do oligopolies exit? list five or six oligopolists whose product you own or regularly purchase? what distinguishes oligopoly from monopolistic competition?
To increase marketplace share, Giuseppe would like to raise sales to 750 every week. Elucidate price should Giuseppe set.
(a) Assume a competitive labor market. Draw the demand of labor curve for an individual firm. Assume that the firm faces a labor supply curve that is neither perfectly inelastic nor perfectly elastic. If the firm has the ability to command more ef..
If average total cost is declining, then: A. marginal cost must be greater than average total cost. B. the average fixed cost curve must lie above the average variable cost curve. C. marginal cost must be less than average total cost.
If government pays a subsidy in a market and households keep most but not all of the subsidy payment then we know a) the demand curve is perfectly elastic. b) the demand curve is relatively more elastic than the supply curve.c) the demand curve is re..
What total utility will you realize? Assume that, other things remaining unchanged, the price of X falls to $1.00. What quantities of X and Y will you now purchase?
In 2006 rental car companies often charged more to rent a compact car than an SUV or a luxury vehicle Why do you think rental companies turned their normal pricing structure on its head?
What would like you to do some research and find out what nation would be the most ideal markets for your new product.
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