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If the price of soda doubles from $1.00 per can to $2.00 per can and you buy the same amount, what is your price elasticity of demand for soda, and is it considered elastic or inelastic?
The Charm City Cereal Company makes a cereal from several ingredients. Two of the ingredients, oats and rice, provide vitamins A and B. The company wants to know how many ounces of oats and rice it should include in each box of cereal to meet.
My paper firm generates a monthly profit of $500,000 as I dump a noxious affluent into the nearby river due to the absence of law or regulation. Your downstream brewery must therefore filter the water before it is used to make beer which, in turn,..
Suppose that the current market price of VCRs is $300, that average consumer disposable income is $30,000, and that the price of DVD players (a substitute for VCRs) is $500. Under these conditions annual U.S. demand for VCRs is 5 million per year.
As the level of output increases, what happens to the difference between the value of average total cost and average variable cost? Decreases because average fixed cost decreases as output increases.
A firm's demand function is defined as Q = 30 - 2P. a) Use this demand function to calculate total revenue when price is equal to 10 and when price is equal to 11. b) What is marginal revenue equal to between P=10 and P=11
Assume the company orders printer paper in truckloads of 10,000 boxes every 3 weeks. They pay $20.00 per unit and it costs $200 to place the physical order. In addition, the cost of capital is 20% per year and the annual holding cost
Brandt writes, "Literacy, like land, is a valued commodity in this economy, a key resource in gaining profit and edge" (169). In what ways does literacy relate to the economy
If a primary auditor is significantly dependent on the work of another auditor, what reviews and substantive tests should they conduct?
The demand for money in a country is given by Md= 10,000-10,000r +Y. Where Md is money demand in dollars,r is the interest rate (a 10 percent interest rate means r=0.1), and Y is natinal income. Assume Y is initially 5,000.
Assume that all other banks hold only the required amount of reserves. If First national decides to reduce its reserves to only the required amount, by how much would the economy's money supply increase.
Calculate SRATC, AFC, AVC, and MC when output is q = 20 units per hour. Calculate the output at which SRATC is minimized and SRATC at that output. A cost study has determined the firm's short-run total cost function
Assume that the federal government increases spending on public works programs, such as highway construction, by $40 billion. How does this change in spending affect the aggregate demand curve
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