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Suppose that a company offers quantity discounts. If up to a 1000 units are purchased, the unit price is $10; if more than a thousand and up to 5000 units are purchased, the unit price is $9; and if more than 5000 units are purchased, the unit price is $7.50. Develop a spread sheet using the VLOOKUP function to find the unit price associated with any order quantity and compute the total cost of the order.
Among their many functions, financial institutions. In an interest rate swap, the size of payments swapped is determined by. Under the efficient markets hypthesis: Suppose I am given a choice between $8800 today or $10,000 in 3 years. If I choose to..
Explain why, in a perfectly competitive environment, a profit maximizing firm will increase its labor force up to the number of workers that equates the prevailing wage rate to the value of the marginal product of labor (the marginal revenue product ..
Both antritrust policy and industrial regulation deal with monopoly. Illustrate what distinguishes the two approaches. how does government decide to use one form of remedy rather than the other.
A service station owner in Staten Island, NY, was worried that raising the price of gasoline would cause the quantity demanded to fall by so much that he would be in a worse situation than if he did not raise the price.
Suppose the own price elasticity of market demand for retail gasoline is -0.6, the Rothschild index is 0.4, and a typical gasoline retailer enjoys sales of $1,800,000 annually. What is the price elasticity of demand for a representative gasoline reta..
Assume the cost of a can was $5.10. In this case, to maximize its profit the firm illustrated in the figure above would
Explain what happens to consumption, investment, and the interest rate when the government increases tax rates (but keeps government expenditures constant). How does the size of the MPC affect the outcome?
Explain why a system of marketable pollution permits leads to less costly pollution abatement and a higher concentration of polluted areas than a command and control system.
Discuss why countries create barriers to trade when economic theory shows trade as being beneficial to a nation. Who benefits from international trade? Who loses from international trade? How can the negative effects of the failures from internationa..
In the _____, the perfectly competitive firm will seek out ___________.
Assume a two-country world containing country A (whose currency is the dollar) and country B (whose currency is the peso). In this context, and using relevant graphs, explain how a depreciation of the dollar against the peso (for example, a 10% depre..
Joe won $365,000 a year for life in the state lottery. Use a labor-leisure choice analysis to answer the following: Show how Joe’s lottery winnings affect the position of his budget line. Joe’s utility function for goods per pay (Y) and hours of leis..
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