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Revenue at a major cellular telephone manufacturer was $1.4 billion for the nine months ending March 2, up 97 percent over revenues for the same period last year. Management attributes the increase in revenue to a 137 oercent increase in shipments, despite a 17 percent drop in average bleded selling price of its line of phones. Given this information, is it surprising that the company's revenue increased when it decreased the average selling price of its phones?
Given the following information calculate the multiplier effect on Y, i.e. by how much does output increase or decrease by (Y), if Unless told otherwise, assume other factors are held constant. For example if you are told that only government spend..
First we have to determine the general inflation rate over the project period, then we need to convert the cash flows into actual dollars into equivelant constant dollars with year zero as the base year. Then if the annual inflation free interest ..
Assuming that this 50 percent overtime-pay premium is newly required for all work beyond eight hours per day, draw a budget constraint that pictures a strategy of cutting hourly pay so that, at the original hours of work.
Jack is a talented investor, but his earnings vary considerably from year to year. In the coming year he expects to earn either $250,000 with good luck or $90,000 with bad luck. Somewhat oddly, given his chosen profession, Jack is risk averse.
Suppose you have some information on a sample of investment bankers, and are interested in impacts of height and of seniority on their success.
The supply curve for cars is given by the following: Qs = 2p-1000. Further the demand curve for cars is given by Qd = 8000 - p. In the equilibrium for the car market own price elasticity of demand (in absolute value terms) is equal to
When the price of squiggles is $700, 2200 units are demaded. When the price per unit of squiggles is $300, 4200 units of squiggles are demanded. 1) Use these two points and calculate the estimated demand function.
Suppose that fixed costs increase by $50 but the prevailing market price remains unchanged. Using algebra determine the effects of this change in cost on the profit maximizing output and the optimal profit. Algebraically calculate the profit maxim..
Bob and Bill are college students. They are trying to decide what to do over the next summer. Bob's father has suggested that they both come and work at his plastics manufacturing company where each will earn $3,600 over the summer.
A business invested $12,000 in a piece of equipment which helped reduce labor costs by $2,000 annually and reduced rejects by an estimated $1,800 annually. After 5 years, the machine has to be replaced by a new machine for the same cost.
The new mayor has pledged to reduce air pollution, and the only source of air pollution in the city are two cement plants, plant A and plant B. 25 years ago, when plant A was constructed, the cement production techn..
If the AD shortfall is $800 billion and the MPC is 0.8, (a) How large is the desired fiscal stimulus (b) How large an income tax cut is needed how much more government spending would achieve the target
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