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Welcome on board to Cold Brothers (CB). As you know we supply restaurants in the Midwest with ice-making machines. We are currently competing in a Cournot duopoly setting as we only have one serious rival: Frozen Sisters (FS). Unfortunately our products are viewed as very similar by the customer base in our relevant market, and therefore, we are both facing the following inverse monthly market demand curve: P = 300 - Q. However, we are out-competing our rival in terms of costs. Our accounting department has informed me that our monthly costs are roughly CCB(QCB) = 500 + 4QCB, while our competitor's costs are estimated to be twice as much in both fixed costs and marginal costs: CFS(QFS) = 1,000 + 8QFS. Since we are enjoying a nice cost advantage we are thinking about making an investment with our suppliers to bring our product to the market before our rival (as we are currently simultaneously supplying the market). The speedy delivery will cost us $1,000 per month, and I would like you to let me know if you think the investment is worth it.
identify three companies that operate internationally and explore the possible sources of political risk for each of
Would you mind sharing with the class a simply numerical example showing how the CPI is calculated. What can you share with the class concerning the substitution bias associated with the CPI.
Suppose that the "Small but Significant and Nontransitory Increase in Price" threshold is 5%. Making use of critical elasticity of demand analysis, do the existing producers of this product represent an antitrust market, or do additional substitut..
Many companies are using computer mediated communication for training and updating their employees. They must choose the most effective and efficient manner of communication. Effective and efficient may be defined as achieving
answer the following questions using examples and applications from the readings. justify your answers using economic
California's newly deregulated power market start operation. The large power utilities in state turned over control of their electric transmission amenities to the new Independent System Operator (ISO) to promise fair access to transmission through a..
The velocity of M1 money has moved erratically in the past several years because Answer of low and stable rates of inflation of regulatory changes allowing banks to pay interest on checkable deposits interest rates have been stable monetary policy..
Suppose you are the manager of a watch making firm operating in a competitive market. Your cost of production is given by C = 200 + 2q2, where q is the level of output and C is total cost. (The marginal cost of production is 4q; the fixed cost is $20..
george dundee operates a lumber mill outside of oklahoma city. dundee has a contract to deliver 15 truckloads of cut
Suppose a firm produces bicycles. Will the firm's accounting statement reflecte the opportunity cost of the bicycles Why or why not What cost would an accounting statement revelat Should current decisions be based on accounting cost
How can we measure the opportunity cost of producing a good? Using a bowed outward production possibilities curve between ice cream and hammers, identify graphically the opportunity cost of obtaining an additional hammer.
1. marginal revenue product is defined as the change in total revenue that results from the employment of an additional
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