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You sell widgets, driven by an inverse demand (pricing) equation P = 400 - 0.25Q, where P is the price of an 100 unit box. The initial price of a box is $100. Should you raise the price of your widgets? What will be the effect on total revenue?
The Olde Yogurt Factory has reduced the price of its popular Mmmm Sundae from $2.25 to $1.75. As a result, the firm's daily sales of these sundaes have increased from 1,500 per day to 1,800 per day. Compute the arc price elasticity of demand over thi..
A crops mean for 3 years of production was 2,682,587 tons. On the 4th year the crop produced 3,037,534. How do I find the percent increase from the mean to the 4th year?
For each of the following indicate what market structure best represents the good or service and briefly outline 2 characteristics of each market structure.
Why would your company have bid with a zero mark-up on some past tenders? Why didn't it win all of those contracts? What is the bid price that maximizes the expected contribution of the contract?
According to the concept of limited liability, the liability of shareholders of a company is restricted to the face value of shares. They have no personal obligation for the liabilities of the company. How does the concept of limited liability impact..
M. Poirot wishes to sell a bond that has a face value of $1,000. The bond bears an interest rate of 11.45% with bond interest payable semi annually. Six years ago, $829 was paid for the bond. At least a 12% return (yield) on the investment is desired..
Newmark & Co. Real Estate, Inc., (the broker) contacted 2615 East 17 Street Realty, LLC, (the landlord) to lease certain real property on behalf of a client (the tenant). As is common in real estate transactions, the broker is paid a commission. What..
A one-year long forward contract on a non-dividend-paying stock is entered into when the stock price is $38 and the risk-free rate of interest is 8% per annum with continuous compounding. a) What are the forward price and the initial value of the for..
Description of how globalization should have improved/not improved the situation in a country such as Malawi including. Characteristics of Globalization for a country such as Malawi. For each characteristic in i), the changes that should occur for Ma..
Suppose Paula consumes both 87 and 89 octane gasoline. Assume that before the recent price increases, Paula paid $3.00/gallon for 87 octane and $3.10/gallon for 89 octane. The price of each grade of gasoline has now risen by exactly 65 cents. Make th..
Draw the MC cure for Guns in terms of the production of butter. If the economy produces 3000 guns per day, how much butter can it produce per day.
Assume that Wal-mart is the only employer of retail workers in a small town in Indiana. As a local non-discriminating monopsonist, Wal-mart faces a labor supply curve given by: Find Wal-Mart’s Total Labor Cost and Marginal Cost.
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