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Suppose the number of firms you compete with recently increased. You estimated that as a result of the increased competition, the demand elasticity has increased from -2 to -3, ie you face more elastic demand. You are currently charging $10 for your product. If demand elasticity is -3, you should charge (X).
Suppose you own a specialized auto parts manufacturer. You purchase and have installed a new machine to make a particular type of part. The price of the machine plus installation is $300,000. If you have already purchased the machine, should you go a..
A monopolist is facing a threat of entry by another firm. First the entrant decides whether or not to enter, and then the incumbent decides whether or not to cut its price (fight) in response. If the entrant decides to stay out, it gets a payoff of 0..
The FTC and the Department of Justice guidelines state that, in the US market-driven economy, firms will be forbidden to
Sam spends $6/wk on orange juice and apple juice. Orange juice costs $2/cup while apple juice costs $1/cup. Sam views 1 cup of orange juice as a perfect substitute for 3 cups of apple juice. Find Sam’s optimal consumption bundle of orange juice and a..
3. assume a monopolist who sells a product with a total cost function c -100q 15q2. the market demand is given by the
A local paintball business receives total revenue of $8,000 a month when it charges $10 per person, and $9,600 in total revenue when it charges $6 per person.
Each cash flow is equal to $128,000. The nominal interest rate is 12% compounded semi-annually. What single amount on Jule 1, 2015 is equivalent to this cash flow system?
Suppose that the government and central bank together want to keep GDP of a closed economy constant but raise the level of investment. What policies can they follow to achieve this?
The extent to which Employment Insurance alleviates poverty and redistributes incomes depends on how the benefits are distributed and how the program is finance
The equation for the original demand curve is Q=50-6.25P. Find the new demand equation when demand increases by 20%. The supply curve for the product is Q=-10+12.5P. Find the original equilibrium price and quantity using the above demand curve.
Defend or critique the primary alternative sources of healthcare funding in the United States - Analyze the key types of policies required for the delivery of a public health insurance program, and hypothesize their main effects on the achievement ..
a) What is the Marginal Private Cost of The Dumpling House? b) What is the market equilibrium?(price and quantity)
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