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Suppose there are two identical individuals with the following demand curves.
P = 3 - (1/4)Q . What is the market demand curves if these demand curves are added
a) Horizontally
b) Vertically
If Laura and Ring had three kids and $26,000 of itemized expenses, what would be their taxable income, tax, marginal tax rate, and average tax rate?
When your first child is born, you begin to save for college by depositing $225 per month in an account paying 12% interest per year. You increase the amount you save by 2% per year. With continuous investment and compounding, how much will have accu..
Use at least one of the four Marshall-Hicks laws of derived demand to explain this difference in effectiveness between the unions.
Explain why the cost structure associated with many kinds of information goods and services might imply a market supplied by a small number of large firms. (At the same time, one internet business such as grocery home deliveries have continually suff..
Clearly show how you derived your answer - any "yes" or "no" without explanation will receive an automatic 0 points, even if the answer is correct.
When the price of a top-of-the-line luxury sedan was $85,000 there were 6,184 sold. Several years later when the price was $116,000, although the cars were basically unchanged, there were 9,462 sold. Does this mean that the demand for these sedans sl..
Explain the real-nominal principle in detail? This is from Economics course.
Explain the difference between discount bonds and premium bonds. When do bonds trade at face value? How do discount bonds behave
The demand functions faced by a firm in two different markets are: Q1 = 600 – 10 p1 and Q2 = 800 – 10 p2. The firm has constant marginal costs of production equal to $20. Find the optimal prices and output if the firm price discriminate in the third ..
Although cost leadership is perhaps less relevant for firms pursuing product differentiation, costs are not totally irrelevant. What advice about costs would you give a firm pursuing a product-differentiation strategy? What is the role of costs in a..
Use a 2-step binomial tree to price an American Call Option written on a stock with a volatility of 20% and a stock price of $50/share. The option expires in exactly one year and has a strike price equal to $35/share. A dividend of $1/share is expect..
Draw the prisoners dilemma payoff matrix. What are the dominant strategies in this game?
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