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In a competitive market, the demand and supply curves are Q(p) = 12 - p and S(p) = 5P, respectively. What percentage of the total surplus is lost if the government imposes a sales tax (ad valorem) of 20% collected from the producer?
Explain the role of light energy in this system, how it makes a difference in the reduction of the dye, and how it allows us to measure photosynthesis.
What is the profit-maximizing output of the monopolist shown below? What is the monopolist’s markup over the competitive price? Levi’s has an advertising slogan: “Quality never goes out of style.” Consumers can buy other kinds of jeans, including off..
Would it be fair if colleges allocated seats in courses on the basis of price? In other words, let students bid for available seats in classes, rather than using a first-come, first-served system based on some sort of administrative procedure. Explai..
What is the profit maximizing level of production/sales for this company? What is the price? What are its profits?
Burning Bridges: An island between countries A and B is in dispute. The island is connected to Country B's mainland by a bridge. The island is currently occupied by B's Army. A's army is deciding to attack the island or not. In the event of an attack..
Compare operations of foreign exchange markets to domestic markets. Explain how foreign exchange rates, economic conditions, and the international business environment affect prices charged in foreign markets.
Suppose the economy is in an inflationary gap. Which of the following public policies would not help the economy get back to potential real GDP?
Explain and graphically illustrate how a two-part pricing strategy works when consumers all have identical demand characteristics. Clearly label on your graph the access fee, user fee, and the profits that the seller receives. What is true about the ..
Tammy was shopping in Save-a-Lot Grocery Store when Stewart, an employee, brushed Tammy’s ankle with a grocery cart. A short time later, while still shopping, Tammy told Stewart that he should say “Excuse me,” and then people would get out of his way..
An economist estimated that the cost function of a single-product firm is
Your company is contemplating bidding on an RFP (Request For Proposal) for 100,000 units of a specialized part. Why might the amount be more than the requesting company actually wants?
Specialty Maching, INC bought a new multi-turret turning center for 250000. The machine generated new revenue of 80000 per year. Operating costs for the machine averaged 10000 per year. Determine the after-tax net present worth of this asset over the..
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