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What is the Corporate Average Fuel Economy (CAFE) program? What are the benefits of having CAFE standards? What are its limitations? Why is the program popular despite the limitations?
Mia is the only seller of baskets to the people in this village. They purchase baskets according to the blue demand curve. Let's examine the sales revenue (which equals price times quantity) Mia would receive if she were to set the price somewhere in..
Suppose a firm faces the following demand for its output q: q = 100 – 10p, where p represents the price it receives per unit sold. Assume this firm marginal cost is MC = 4. What is the absolute value of the price elasticity of demand at this firm’s p..
Utility is given by the function U(x,y) = (x + 2)^0.6y^0.4. Income is I and the prices of x and y are respectively Px and Py. Solve for the optimal quantities of x and y. Are corner solutions possible?
Evaluate competitive advantage potential of cross-business strategic fits among the various business units. Check whether firm's resources fit requirements of its present businesses.
A furniture maker has an order for 98 identical tables. If the furniture maker estimates his learning curve at 82% and can reach steady production of 7 hours per table on the 6th table, how long should it take to make all the tables? Express your ans..
In the short run, prices may rise faster than costs. This chapter discusses why this might happen. Suppose that labor and management agree to adjust wages continuously for any changes in the price level. How would such adjustments affect the slope of..
Billie Joe loves Krispy Kreme donuts and coffee. Billie Joe likes to eat 3 donuts (D) for each cup of coffee (C) he drinks. His utility function is: U = min(0.333D, C). The price of each donut is $0.60 and the price of coffee is $2.20. Given Billie J..
How do we graphically represent the utility maximizing bundle that consumers can afford?
Fischer Skis has been producing high quality skis for a long time with no change to any market conditions. Answer the following question(s) about Fischer Skis in relation to the ski industry assuming that the ski industry is a competitive constant co..
You want to retire in 35 years. The Actuarial table indicates that your anticipated years in retirement will be 20 years. If you anticipate the return on your investments will be 5% and you wish to get $100,000 per year in retirement, how much money ..
Review the Case for Analysis: The Chairman's Quandary on page 361 in the textbook, Economics for Managers Summarize the recent policy of the Federal Reserve concerning the level of interest rates and the reasons for this policy. What problems can ari..
Suppose the tax on liquor is increased so that the tax goes from being a "medium" tax to being a "large" tax. As a result, it is likely that:
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