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MichiganSux Computers is a manufacturer of customized computers that meet the specifications required by a local university. Over 90 percent of their clientele consists of college students. MichiganSux Computers is not the only firm that builds computers to meet this university's specifications; indeed, it competes with many manufacturers online and through traditional retail outlets.To attract its large student clientele, MichiganSux Computers runs a weekly ad in the student paper advertising its "free service after the sale" policy in an attempt to differentiate itself from the competition. The weekly demand for computers produced by MichiganSux is given by Q = 1000 - P, and its weekly cost of producing computers is TC = 2,000 + Q2. If other firms in the industry sell PCs at $600, what price and quantity of computers should MichiganSux produce to maximize profits? What long-run adjustments should be anticipated? Explain?
How can your company look for a new market spaces outside its own industry and explain the six paths framework, and how can it be used to create value for your e-business?
The difference in inflation rates among industrialized nations is often only a few percentage points. Nevertheless, annual exchange rates among currencies of industrialized nations have changed by more than 10% in some years. Evaluate what this sugge..
Assuming the ABC bank has excess reserves of %5,000, it could prudently expand its loans by a maximum
4,000,000 stems were sold that week. During the week of June 5-11, the rose market cleared at a price of $0.20 per stem and 3,800,000 roses were sold. From this information what would you conclude about the price elasticity of supply in the rose ..
Why do economists analyze the macro economy from both a positive and normative perspective? In your opinion, which is more important and why?
Use the two big questions of economics and the economic way of thinking to answer the following questions about the economic life of a homeless man.
Melissa engages in an activity that influences the well-being of a bystander. In order for Melissa's activity to give rise to an externality, it must be the case that
What is the main purpose of a book keeper? Is it to keep track of all the files and manage the money?
The annual expenses of manufacturing and selling the soap equal $73,500. Determine the EAW if the interest rate is 15%.
Why does the ATC curve always lie above the AVC curve? Why do the two curves move closer together, but never seem to meet each other? What does the law of diminishing returns have to do with the shape of the AVC and ATC curves? Explain why those curv..
How are the depopulation of Whales worldwide and Congested Highways similar in terms of economics? What are some possible solutions to both?
Suzette Crepe orders pancakes at her local IHOP every morning. When pancakes cost $1.20 per stack, she buys 6 stacks. When the price/stack is $1.80, she buys 5. Microwaveable pancakes become available at Suzette’s grocery store. Will her demand for I..
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