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Jaynet spends $25,000 per year on painting supplies and storage space. She recently received two job offers from a famous marketing firm – one offer was for $105,000 per year, and the other was for $85,000. However, she turned both jobs down to continue a painting career. If Jaynet sells 30 paintings per year at a price of $9,000 each:
a. What are her accounting profits?
$
b. What are her economic profits?
Consider a Cournot duopoly with the inverse demand p = 130 - Q. Both firms have constant marginal and average cost MC = AC = 10. Find the Cournot-Nash equilibrium output and profit of each firm. Calculate the con-sumer surplus and DWL.
You are the manager of a monopoly that faces a demand curve described by P = 85 - 5Q. Your costs are C = 20 + 5Q. The profit-maximizing price is
Presently the theater advertises 125 times per week. Assuming this is the only theater in town, and its marginal cost, MC, is equal to zero, Determine the profit maximizing ticket price for the theater.
Ann Page Corporation has fixed expenses of $30,000 per year. Variable expenses per unit are $17. Sales price per unit is $30.
Suppose the government of Washington is considering the addition of a new tax on rms. You have been called in to provide expert analysis on how such a tax would eect employment of labor. A tax on every hour an employee works (e.g., \X" cents per hour..
Suppose that a calculator company operates in a perfectly competitive marketplace producing 5,000 Calculators every day.
Your article shows money performing (or failing to perform) at least one of the following functions: (a) medium of exchange, (b) store of value, or (c) standard of value. Which one of those functions does it show? The event may have occurred in the p..
How does this variation affect people and corporations? Use the graph functions of Word or Excel to assist you-You will need two graphs.
Scottish political economist Adam Smith didn't trust situations where the people who provide the money for a business don't actually manage the company. In The Wealth of Nations, he observed that such managers don't watch over the investment
q.a consumer is in equilibrium at point a in the accompanying figure. the price of good x is 5.a. illustrate what is
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A farmer’s field grows 30 bushels of corn and 10 bushels of beans. The farmer can either consume these crops herself or trade them, with one bushel of beans being traded for one bushel of corn. Graph the farmer’s budget which is the possible combinat..
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