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Assume that your business firm is a price taker and that the company sells widgets at $10 apiece. Your firm is maximizing profits. One of your engineers discovers the presence of a substitute input that enables you to cut your production costs in half. Given that information, answer the following questions:
What price will you charge for your widgets following the discovery of the input and its subsequent use in production? Why? Will you decrease output, increase output, or keep output the same? Why?
The F-statistic is an alternative measure of goodness-of-fit of an estimated regression equation and defined as the: a)variation not explained b)variation explained c) variation not explained by the regression equattion relative to the variation expl..
please answer all questions.nbsp to get partial credit for incorrect answers please show your work.nbsp to get full
Inflation is forecasted to remain consistent with its target over the next 1-2 years. Inflation arises when:
In your own words, summarize the article, "Tourism Investment Monitor," by Tourism Research Australia, May 2015. In particular, what are the main messages of the article? Use appropriate diagrams to answer: Do you think increasing investment in Au..
Determine Joe's optimal consumption in both periods of his life. Is Joe a saver or a borrower? Determine his optimal level of savings
Why does an increase in investment spending lead to an increase in consumption spending?
If the function of total costs of a business comes from: TC(q)= 3q3-54q2+500q+2595
In an economy, when income increases from $400 billion to $500 billion, consumption expenditure changes from $420 billion to $500 billion. Calculate the marginal propensity to consume, the change in saving, and the marginal propensity to save.
Foreign exchange markets make it possible for trade to be enacted between countries without lengthy negotiations on trade terms. The exchange rate mechanism is a relatively stable process whereby different currencies can be exchanged in an orderly ma..
A man wants to deposit $50,000 now and $60,000 at the end of six years in a bank that pays 12% interest compounded semiannually. He wants to withdraw an amount every year for the first six years and to withdraw exactly $1,500 more for the following f..
In our text, there is an example of randomized block design in the form of an “Air Traffic Controller Stress Test” that begins on page 570. Do you think that the Air Traffic Controller Stress Test could have been formulated as a factorial experiment?..
explain why airlines might be more likely to match price cuts than price increases. (b) Which theory of oligopolistic behavior does the above situation most resemble?
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