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A restaurant faces very high demand for its signature mousse desserts in the evening but is less busy during the day. Its manager estimates that inverse demand functions are pe = 32 - Qe in the evening and pd = 22 - Qd during the day, where e and d denote evening and daytime. The marginal cost of producing its dessert evening, MCe, is $8. The marginal cost of producing its dessert daytime, MCd, is $4. There is no fixed cost of producing dessert.
Create a spreadsheet with the column headings Qe, Pe, TRe, MRe, TCe, MCe, πe, Qd, Pd, TRd, MRd, TCd, MCd, and πd. (note: πe is profit evening and πd indicates profit daytime)
Discuss the major limitations of mobile E-commerce. Which of them are likely to disappear? Why is the electronic job market so popular, especially among the high-tech professions?
Suppose two firms supply the market for computer chips and their products are perfect substitutes. The firms choose what quantity to produce independently, i.e. compete as Cournot. What is the one-period Cournot-Nash equilibrium output and price? Wha..
Why will a sale of bonds have the greatest effect on real GDP when unemployment is low vs high?
You are trying to sell your audio system (an amplifier and speakers) to raise money for an upcoming trip to overseas. The system works great, and audiophile friend tell you that if he were in the market for this kind of equipment (which he isn’t), he..
In his discussion of post-WWII growth in France, Blanchard describes the effects of destruction of part of a nation's capital stock. Suppose that instead of a decline in the capital stock a country experiences a decline in N resulting from a plague t..
What assumptions do we make in the long run regarding the velocity of circulation and the relationship between real GDP and potential GDP? (MV=PY)
Conduct research and report some plausible reasons for the budget deficit during this period.
(a) Construct a? 99% confidence interval for the proportion of adults from the Midwest who say traffic congestion is a serious problem.
What is the future value of 24 periodic payments of $4,620 each made at the beginning of each period and compounded at 8%? What would you pay for a $194,000 face value bond that matures in 15 years and pays $19,400 a year in interest if you wanted to..
If a monopolistic firm (price searcher) can sell 9 units at a price of $100 each but must reduce its price to $80 in order to sell 10 units, then Demand is inelastic and marginal revenue is negative. Marginal revenue is falling but is above price
A donut shop has a production function given by Q = 50K1/3L1/2, where Q is the number of donuts produced per hour
A producer of ballpoint pens has been purchasing ink from an ink supplier and is considering acquiring the ink supplier. Would the pen company be more or less likely to vertically integrate by buying the ink manufacturer if the government taxes ink? ..
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