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A firm is planning to manufacture a new product. As the selling price is increased, the quantity that can be sold decreases. Numerically they estimateP = $35.00 - 0.02Q(P = selling price per unit, Q = quantity sold per year)On the other hand, management estimates that the average cost of manufacturing and selling the product will decrease as the quantity sold increasesC = $4.00Q + $8000where C = cost to produce and sell Q per yearThe want to maximize profit. What quantity should the decision makers plan to produce and sell each year?
The Republic of Republic produces two goods/services, fish (F) and chips (C). In 2006, the 200 units of F produced sold for $3 per unit and the 500 units of C produced sold for $1 per unit. In 2007, the 300 units of F produced sold for $4 per unit..
Assume that a monopoly's production function is Cobb-Douglas, Q = L^1/2 * K^1/2, where L is labor and K is capital. The demand function is P = 100 - Q. The wage rate, wL, is $1 per hour, and the rental rate of capital, wK, is $4 per hour. (a) Deri..
Q1 kilowatts are produced at facility 1, and Q2 kilowatts are produced at facility 2 (so Q = Q1 + Q2). The costs of producing electricity at each facility are given by C1(Q1) = 8,000 + 6Q12and C2(Q2) = 6,000 + 3Q22, respectively. Determine the pro..
If beta of portfolio is .326, the present yield to maturity on United States government bonds maturing in one year and an assessment that market risk premium.
Suppose the Canadian dollar (C$) price of one British pound is C$2.12. A hotel room in London costs 120 pounds, while a similar hotel room in Toronto costs C$250. In which city is the hotel room cheaper, and by how much
what unemployment rates would we expect to see in this economy?b. Consider another economy in which the unemployment rate over the next three years is 6%, 7%, and then 4%. According to Okun's Law, what are the levels of short run output (Y tilde) ..
Assume a normal random variable x, with mean 100 and standard deviation 20. a. Find the probability that a randomly chosen value of x is less than 95. b. Find the probability that a randomly chosen value of x is between 60 and 100. c. Find the 95th p..
The presence of autocorrelation leads to all of the following undesirable consequences in the regression results except:
what is the probability that it will be green?I did take one marble out of the bag; it was red. I set it aside. Now I am going to choose another marble at random. What is the probability that it will be green?
The following table is the pay off matrix for zero sum game. Estimate the each players dominated strategy of the following zero sum game?
What is the marginal product of the third worker? What is the marginal revenue product of the fourth worker What is the marginal cost of the sixth worker? Based on your knowledge of marginal analysis, how many workers should you hire
Determine algebraically the profit-maximizing outputs for the production and marketing divisions of the firm and the optimal transfer price for the intermediate product and the price of the final product.
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