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You have estimated that all consumers who buy from your firm have identical demands for your product. Each customer's demand is given by Q = 20 - (P/2), and your total cost of production is TC = 45 + 20 Q. You want to devise a two-part pricing strategy (T ; P), where T represents the fixed fee and P the price per unit. Given this information, the optimal two-part pricing is
Consumers are not able to resell good 1. For p
If Evren wishes to make 25 tons of donuts, how many bakers are required given the current level of capital? How much will it cost to produce this (total cost)?
Suppose that this year’s money supply is $500 billion, nominal GDP is $10 trillion, and real GDP is $5 trillion. What is the price level? What is the velocity of money? Suppose that velocity is constant and the economy’s output of goods and services ..
Analyze the dynamics of supply and demand to anticipate market equilibrium. Analyze the elasticity of demand and supply and its importance, and the effect of taxes or other public policies
The company depreciates its assets on a straight-line basis and has a marginal tax rate of 40 percent. The firm's cost of capital is 14 percent. Based on the internal rate of return criterion, should this machine be purchased?
Find the equilibrium price and quantity after the shift of the demand curve.
Why does the assumption of independence of risks matter in the examples of insurance.
Dan Demaar and Rob Runten are working on a class assignment on economic growth. Dan collects the GDP growth data for the country Fanez, which is located in the Middle East.
How can understanding what kind of learner you are help you to determine which type of document would help you understand better: process explanation or instructions?
Vasco likes spare ribs, R, and fried chicken, C. His utility function is: U(C, R) = 40R^2C. His weekly income is $180, which he spends on only ribs and chicken. If he spends $20 for a slab of ribs and $10 for a chicken, what is his optimal consumptio..
he or she rents 63 movies per year at the same price per movie. What is the implied income elasticity of demand for movies? Are movies a normal good or an inferior good?
As you shop for your favourite clothing, music, and food items try to describe how supply and demand influences the prices of these goods?
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