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a) Compare the initial sum of profits of the two individual firms, p1 + p2, with the profits of the merged firm, pA. Explain and comment.
b) If the merged firm were able to exploit economies of scale it would affect costs, may be even marginal costs. Assume the marginal cost of the merged firm was not 40, but 30. Is the merger profitable in this case?
c) Can you say something about how low the merged firm's MC need to be for the merger to become profitable?
d) Relate this to a real-world merger. Are they usually profitable? Give examples
What factors would cause a firm to decide to buy intermediate products needed for production of its final goods or services?
Compute the industry price necessary for firm to supply 10,000, 20,000, and 30,000 pounds. Compute the quantity supplied by the firm at industry prices of $1.50, $2.50, and $3.50 per pound.
An economist for the widget company estimated following short term production function. Compute the AP and MP mathematically and identify the three stages.
What do you think about the most important determinants that impact demand for banking industry's product or service and determine the impacts of innovation and technology on the cost of production?
Compute Florence's MRS of all other goods for travel. (In other words, compute her MRS with travel on the horizontal axis.
Rigorously analyze the issues you have identified. Base your arguments on data in the case. Demonstrate your critical thinking ability, creativity, and insight, as well as appropriate use of the tools provided in the text or in previous courses.
How much total utility does the consumer receive
Describe the importance of cost of capital with respect to the actual financial problem of most manufacturing companies.
Neolithic Revolution
Many retail companies use mark up pricing? Setting price some percentage above variable cost (such as 50% above cost).
write a report based on the podcasts & the news article in the text and a critique as well (do you agree with Mankiw's view that "Consenting adults should be able to make economic trades
Even before the metals and manufacturing companies described earlier, U.S. railroads in the nineteenth century were M-form organizations based on geography. Why might a large railroad be better organized as M-form than U-form?
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