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Inverse Elasticity:
Imagine you've started a new pizza restaurant. It costs you about $3 to produce a pizza.
Last week you sold 450 pizzas for $12 each.
This week you raised your price and sold 300 pizzas for $16 each.
What price should you be charging? (round to the nearest penny)
Quick Profit sells box juice for $10.50 and has an inverse demand function of: P = 80 - 0.2Q. At the present price Quick Profit is unable to satisfy demand. The owner, Mr. Deal, wants to increase the price by 60%. Do you agree? Explain!
If average variable costs are assumed to remain constant over a 10 percent increase in output, evaluate the effects of the proposed price cut on total profits.
51.q1. clarify export promotion policies as well as import substitution policies with examples of countries that
After graduating, you have a student loan that must be paid off. Your lender gives you two choices: (a) pay a fixed amount $2000 each year.
Consider a onetime change in government policy that immediately and permanently increases the level of the labor force in an economy (such as a more generous immigration policy). In particular, suppose it rises permanently from L to L. Assuming the e..
Evaluate the risk categories, countries, and industries represented in this index 2019s leading companies.
Which of the following statements is true with respect to a market in which there is a perfectly price discriminating monopolist?
John noticed that the calculated present worth for the project is equal to the annual worth multiplied by three. What is the project's first cost?
Do not choose a flash introduction or splash page; you should instead look for a page designed to deliver content. Write the following for your initial post:
Explain why globalization is good for the United States. What are the drawbacks of globalization for our economy? We run huge trade imbalances with two countries. Explain the cause of the imbalances. What is the economist's case for free trade?
it is estimated that the price elasticity of demand is -3.0. Is the firm charging the optimal price for the product. Demonstrate how you know.
How does global economic competition impact the domestic market and decisions related to the strategy a firm uses to compete? Why do some economists oppose trade restrictions? Explain your answer.
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