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In a competitive market the industry demand and supply curves are P = 200 - .2Dd and P = 100 + .3Qs respectively.
a. Find the market equilibrium price and output?
b. Suppose the government impose a tax of $20 per unit of output on all firm in the industry. What effect doest this have on the industry supply curve? Find the new competitive price and output? What portion of the tax have been passed on to consumers via a higher price.
c. Suppose $20-per-unit sale tax is imposed on consumers. What affect does this have on the industry demand curve? Find the new competitive price and output. Compare this to the answer to you portion of the to findings in part (b).
US importer needs £ 1million payment 3-months later also he sign a forward contract today. Better sign a forward contract today also not sign a forward contract today.
The firm wants to provide a semiannual award of $4500. The foundation will deposi the company's endowment in a fund that pays 3.75% compounded semiannually. The first aware will be made in 14 months. Calculate the size of the endowment that will be..
Does the principle of "increasing opportunity cost" hold in this nation? Explain briefly.(Hint: What happens to the opportunity cost of bread-measured in the number of ovens-as bread production increases?)
A local video store estimates their average customer's demand per year is Q = 7 - 2P, and knows the marginal cost of each rental is $0.5.
(b) Provide an example of the interaction between each of these groups. (c) Sometimes a fourth group is included. What would that group be. Provide an example of the interaction between this and the groups listed in your answer to (a).
Airway Express has evening flight from Los Angeles to New York with average of 80 passengers and return flight the next afternoon with average of 50 passengers. Should the airline remain in business?
In August 2002, preliminary information showed that payroll employment increase 39,000, household employment increase 429,000, and the unemployment rate fell from 5.9 percent to 5.7 percent.
Explain how would you evaluate this forecast for your firm.
Assume you are given the following information about a particular industry, Determine the equilibrium price, the equilibrium quantity, output supplied by the firm, and the profit of each firm.
A company produces output with a constant marginal cost MC = 2. Its output is consumed by two types of customers a and b, with demand functions
Evaluate the following statement: "I am a manager in a governmental agency. I have no control over compensation policy. All workers are paid the same salary (everyone is paid according to a set schedule and their remuneration cannot be adjusted by..
How much can Wells Fargo lend to developer who will repay the loan by selling first 6 view lots out of 13 lots at $190,000 each 2 year from now? Assume the bank will lend at a nominal 14% per year, compounded semiannually.
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