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A newspaper recently lowered its price from 50 cents to 30 cents. As it did, the number of newspapers sold increased from 240,000 to 280,000. (LO6-3)
a. What was the newspaper's elasticity of demand?
b. Given that elasticity, did it make sense for the newspaper to lower its price?
c. What would your answer be if much of the firm's revenue came from advertising and the higher the circulation, the more it could charge for advertising?
Given a sample of n observations, the investigator estimates β2 by calculating it as the average value of Y divided by the average value of X. Discuss the properties of this estimator. What difference would it make if it could be assumed that β1 i..
Describe and calculate Project A's expected net present value (ENPV) and standard deviation (SD), assuming the discount rate (or risk-free interest rate) to be 8%. What is the decision rule in terms of ENPV?
Assuming they were profitable before Dave's entry, what happens to the existing theaters' profits? Use two graphs, one for the market and one for the existing firms, to illustrate your answer.
reserve requirement for banks is set at 5. your firm withdraws 42000 on its line of credit at the security bank to
Office building maintenance plans call for the stripping, waxing, and buffing of ceramic floor tiles. This work is contracted out to maintenance firms, and both technology and labor requirements are very basic. Supply and demand conditions in this..
Discuss the possible merits and flaws of this attitude.
a. What is the real value of output (Q) Now assume that the Fed increases the money supply by 10 percent and velocity remains unchanged. b. If the price level remains constant, by how much will real output increase.
.What are the equlibrium quantities (q1, q2 %u2026 ,q10)?. A-q1, q2 %u2026 ,q10 = 2B-q1, q2, %u2026 ,q9= 2 q10=1/2c-q1, q2, %u2026 ,q9= 3/2 q10=1/2d-q1, q2, %u2026 ,q9, q10= 3/2e- q1, q2, %u2026 ,q9= 3/4 q10=1/2f-q1, q2, %u2026 ,q9= 3 q10=1/2g-non..
A large chemical plant is being planned with the capacity to produce 3 million pounds (lb.) of product annually. Raw-materials costs for the product are $0.45/lb. and utility costs are $0.25/lb. Overhead costs are 75 percent of the labor costs.
Discuss forecasting and explain why is it so important in the management of business firms and other enterprises also determine the different types of forecasting?
Show that capital income taxes have no effect in the former, while they depress the effective capital-labor ratio in the latter. Explain why there is such a difference.
Give an example of a game in which only one player has a dominant strategy. What is the Nash equilibrium?
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