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Question about Optimal output level
MPk=15Mpl=22 Pk=7.50Pl=10/unit
Looking to increase profitability in perfectly competitive market. How to efficiently plan production?
Suppose the marginal expense of hiring another worker is $150 and the marginal expense of hiring current workers for an extra hour is $10.
Given the industry's concern that workers shirk, they start employee at $10 and increase the pay by $0.40 each year they are on the job.
You are the manager of Taurus Technologies, and your sole competitor is Spyder Technologies. The two firm's products are viewed as identical by most consumers.
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The following quotations are from an article in the Financial Times on November 9, 2007:
From the regression output, estimate the demand function when income is $40,000 and price is $2 per gallon. Explain the result in terms of R-square, T-test, F-statistic, and signs of each X variables.
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