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Q1. Consider a market characterized by the following inverse demand and supply functions:
P =10-2Q and P = 2 + 2Q.
a. Draw the Demand and Supply curves.
b. Compute the surplus received by consumers and producers in a perfectly competitive equilibrium.
Q2. Recently the National Association of Broadcasters imposed restrictions on the amount of commercials that could be aired during children's television shows. This effectively reduced the quantity of advertising allowed during children's viewing hours by 33 percent. Within four months, the price of a minute of advertising on network television increased by roughly 14 percent. What impact do you predict this had on the revenues of the networks?
Q. 3 A division manager is presented with two new project proposals. Both projects are projected to cost $60,000. Project 1 is predicted to have a 50% chance of generating $100,000 in revenue and a 50% chance of generating only $50,000 in revenue. Project 2 is predicted to have a 75% chance of generating $100,000 in revenue and a 25% chance of totally flopping and generating effectively no revenue. If she is riskaverse, which of the two will she prefer?
If she wants to make money, will she launch that preferred project?
Management has recognized the effect of changes in the real-world competitive environment and government policies on other industries and anticipates similar events occurring in their industry, so they ask you for a report considering the following p..
recently hired to replace the manager of the Roller Division at a major conveyor-manufacturing firm, despite the manager's strong external sales record. Roller manufacturing is relatively simple, requiring only labor and a machine that cuts and cr..
The following table given below presents estimates of the maximum levels of output possible with various combination of two inputs.
We make choices as customers every day. Opportunity cost is defined as a person's next best alternative' or best of what you give up when you make a choice
Calculate the industry output and market share at the current price of $2,200, assuming the prices are stable and unlikely to change.
Why might market-orientated supply-side policies have undesirable side-effects on aggregate demand?
Orange Corporation is evaluating its financing needs for the coming year. The company has been in business for only three years, and the company's chief financial officer
Now that many businesses have upgraded to an online platform, are paper catalogs a thing of the last? Let's look at this from both sides of the table, both the customers and the manager.
q1 the harold shipman private healthcare clinic ltd specialises in hip knee and shoulder replacement operations that it
From the e-Activity, propose a methodology for assessing the risk in business contracts. Assess the economic impact this methodology may have for the organization.
What type of agency problem is involved here - why would Marriott worry about the quality of hotels it doesn't own but franchises and identify firms that periodically shut down their operations. What are the conditions that exist when they shut down..
Dominant price leadership exists when one company drives others out of the market. The dominant company decides how much each of its competitors can sell.
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