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Why is it that a profit-maximizing businessman would always raise prices when facing an inelastic demand curve, but might or might not raise prices when facing an elastic demand curve? Explain and justify your answers in detail
Explain the relationship between MR and MC at the profit-maximizing output. Also discuss the relationship between Price and Marginal Cost and price elasticity of demand. Is this level of output economically efficient?
In Mexico, it takes 3 days to produce a bulldozer and 12 days to produce an airplane. In Brazil, it takes 2 days to produce a bulldozer and 10 days to produce an airplane. The opportunity cost of producing an airplane is lower in
Make a list of businesses that provide goods and services that you or your family members use in a typical week.
Illustrate what would happen to the profit maximizing level of output if the market price suddenly rose to $54 per case. Explain why the output level changes.
q1. if real salaries increase but nominal salaries do not what can be said of prices on average?q2. he second year of
Calculate whole expected convenience from each restaurant option and also compare?
Suppose production function for noodle soup at Slurping Turtle is Q =4k^1/2 L^1/2. They currently own 4 units of capital and are not able to change this during the short run. The rental rate of capital is $10 and the wage rate is $20. What is Slurpin..
Design an alternative author-compensation scheme under which the author and the publisher would pick the same price.
Abby and Jason are building a new house. They obtained a construction loan of $100,000, which will be rolled over into a conventional 20-year mortgage when the house is complete in 14 months. Simple interest of 0.5% per month will be charged on the c..
Why do most countries use trade protection tools? Is there any theoretical justification to use trade protection tools? Explain why rich countries subsidize agricultural sector in their economies. Explain why rich countries subsidize high-tech firms ..
Whether the U.S. Congress press a tariff raising the cost of Japanese compute. Illustrate what are four mutually exclusive states of the world that you should be concerned about
module learning outcomesbullunderstand the purpose and key parts of a business planbullknow how strengths weaknesses
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