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Kashian Motors has determined that the price elasticity of demand for two customer segments (A Luxury Car and a Premium Car) is -1.35 and -1.55. Based on their expectations of profitability, Kashian realizes the price of a Luxury Car should be $51,500. How much should Kashian charge for its Premium Car?
In solving an arithmetic gradient problem with the gradient decreasing, which is true? Use the highest amount as the base. Calculate uniform series with that base amount, and then subtract the calculated gradient (wedge).
Over the past 5 days, the common stock of Tyler Mfg. had daily returns of 0.2, -0.1, -0.2, 0.3, and 0.1 percent, respectively. For the same 5 days, the market had daily returns of 0.0, 0.1, -0.3, 0.4, and 0.2 percent, respectively. What is the cumula..
firm's marginal cost curve crosses marginal revenue curve at an output level of 1,000 units. Illustrate what is firm's current profit. Illustrate what is likely to occur in this market and why.
A local video store estimates its average customer’s demand per year is Q = 7 − 2P, and it knows the marginal cost of each rental is $0.5. How much should the store charge for an annual membership in order to extract the entire consumer surplus via a..
A necessary cost-side condition for a firm to implement a cross-subsidization pricing strategy is:
Suppose a country has a money demand function (M/P)^d = kY, where k is a constant parameter. The money supply grows by 12% per year, and real income grows by 4% per year. What is the average inflation rate? How would inflation be different if real in..
If the government sets a maximum price for gasoline above the equilibrium price:
q1. during a coffee-room debate among several young mbas who had in recent times graduated among all one of the young
Illustrate what is difference between contractionary and expansionary monetary policy. Illustrate what are pros and cons of using expansionary.
Assume that the production function is given by Y = AK0.5L0.5, where Y is GDP, K is capital stock, and L is labor. The parameter A is equal to 10. Assume also that capital is 100, labor is 400, and both capital and labor are paid for their marginal p..
Why would Berkshire Hathaway own a number of furniture retailers? Outline the possible advantages and disadvantages.
Explain the likely effects of a U.S. recession on the demand for Canadian exports. What would be the effect on Canadian aggregate demand? Suppose the Bank of Canada viewed its monetary policy as being appropriate (for keeping output close to potentia..
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