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The Girl Scouts have a long successful history of selling cookies at inflated prices. Suppose in the area's inverse demand for cookies can be described as follows:
P = Y - mQ
Assume the Girl Scouts purchase their cookies from an area bakery at a set price of $40 a crate, where each crate holds 10 boxes.
Find the profit maximizing quantity for the Girl Scouts. Explain the role of m, why would m be a higher number for Girl Scout cookies than regular cookies?
The Nippon Switch Corporation is an importer and distributor of Japanese packet switches, special routing devices that direct data traffic to various computers on a large private telecommunications network for companies like GM, Sears and 3M. Calcula..
In a certain kingdom, the demand function for rye bread was q = 381 − 3p and the supply function was q = 5 + 7p, where p is the price in zlotys and q is loaves of bread. The king made it illegal to sell rye bread for a price above 32 zlotys per loaf...
Select two international organizations involved with IPE, one that has been effective and one that has been ineffective. Account for their different fortunes. Use case studies to illustrate your point-of-view. What lessons can the ineffective one lea..
A corporate expects to receive $34,688 each year for 15 years if a particular project is undertaken. There will be an initial investment of $122,261. The expenses associated with the project are expected to be $7,426 per year.
Analyze the implications of adverse selection in insurance markets that contain information asymmetry and community ratings. Justify your response.
A change in the expected price level shifts
A fashion clothing retail company venturing into online sales for the first time hopes to increase sales revenues overall, but are also concerned that their online sales maybe at the expense of sales in their existing outlets. They are also consideri..
Explain the underlying basis for foreign direct investment, and discuss several factors that may contribute to it. What factors have likely contributed to the current U.S. net direct investment position?
Government data that computes averages, such as the consumer price index, are applicable to everyone.
Consider a MONOPOLIST that is currently maximizing profits. At the current output level the average variable cost is $18, total revenue is $8,510, and the price is $23. If this monopolist produced nothing, its total cost in the short run would be $2,..
What future amount of money will be accumulated 10 years from now by investing $1,500 now plus $2,200, 5 years from now at 8% interest compounded semi-annually?
Suppose the government imposes a price ceiling of $50 on a market characterized by the following information: Qd=700-2p Qs=100+4p Calculate the magnitude of deadweight loss form the price ceiling. Find a price floor that will result in the same magni..
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