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The external demand and marginal cost functions of the marketing divisions of the firm are, respectively:
Qm = 160-10Pm or Pm=16-0.1Qm and MR=16-0.2Qm
The marginal cost functions of the production and marketing divisions of the firm are, respectively:MCp'=2-0.1Qp and MCm=1+0.1Q
A perfectly competitive market exists for the intermediate product at P=$6.
Determine algebraically the profit-maximizing outputs for the production and marketing divisions of the firm and the optimal transfer price for the intermediate product and the price of the final product.
You are the manager of a monopolistically competitive firm, and your demand and cost functions are given by Q = 36 - 4P and C(Q) = 124 - 16Q + Q2. a. Find the inverse demand function for your firm's product. P = - Q b. Determine the profit-maxi..
Water damage from flooding related to hurricane Sandy in two northeastern Cities resulted in damages estimated at $216 million. As a result of the claimant payouts, insurance companies raised homeowners' insurance rates by an average of $118 per y..
A firm uses labor and machines to produce output according to the production function f(L,M)=4L raise to 1/2 M raise to1/2 where L is the number of units labor used and M is the number of machines. The cost of labor is Php.
assume that the government decides toreduce spending and taxes and so G = T = 274.16. What value mustthe central bank set for M in order to keep the price levelconstant following the government downsizing
Suppose the quantity of good X demanded by individual 1 is given by X1 = 10 2PX + 0:01I1 + 0:4PY and the quantity of X demanded by individual 2 is X2 = 5 PX + 0:02I2 + 0:2PY a) What is the market demand function for total X (= X1+X2) as a function o..
a) Calculate the equilibrium price and quantity, and show them on a diagram. b) Assuming a price higher than the equilibrium price, anddetermine the excess supply.
a company expects to replace office machines and computer equipment at various times over the 6-year planning period. Specifically. The company expects to spend $21000 two years from now. $24000 three years from now. $10000 five years from now.
Find the man-optimal stable matching and Önd the woman-optimal stable matching. Are these matchings identical. 2. Consider a two-sided matching model with two men and two women. Their preferences are expressed by the table: P (m1) = w1 w2 P (w1) = m2
Suppose the equation for th LM curve is Y=13500+100r. Use this equation to explain the level of income at which there is a zero lower bound on the federal funds rate, the interest rate that the Fed controls.
A restaurant borrows $35,000 It will pay back over 5 year period with the following payment terms: 15%, 20%, 25%, 30%, 35% of the initial loan at the end of the first period, and so forth. a) What rate of interest is the bank earning from this loan..
There are three industrial firms in Happy Valley. FIRM INITIAL COST OF REDUCING POLLUTION LEVEL POLLUTION BY 1 UNIT A 70 units $20 B 80 25 C 50 10 The government wants to reduce pollution to 120 units, so it gives each firm 40 tradable pollution p..
Suppose you currently earn $23,000 a year. You are considering a job that will increase your lifetime earnings by $230,000 but that requires an MBA. The job will mean also attending business school for two years at an annual cost of $28,000.
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