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If elasticity is -2, price is $10, and marginal cost is $8, should you raise or lower price?
Lower price. Since demand elasticity is greater than 1 (absolute value) revenues will be increased, and since price is above marginal costs profits will increase.
President North West is spending billions of dollars on military equipment in the U.S. He is also attempting to carry out his promise to put a man on Mars by the end of the decade.
This document shows the uses supply and demand model to explain the evolution of the price of gold and silver.
Determine which of the following nations would you expect to have intertemporal production possibilities biased toward current consumption goods,
Kidney's are not allocated by markets. Discuss the pros and cons of switching to a market for kidneys. Currently, people can volunteer to donate one of their two kidneys,
Although Ken Brown (discussed in problem 3-16) is the principal owner of Brown Oil, his brother Bob is credited with making the company a financial success. Bob is vice president of finance.
Write the equation for Total Costs and what is TC when profit is maximized - what is Total Revenue when profit is maximized?
Using two graphs, show consumer surplus before and after government intervention.
Find all Nash equilibria in pure strategies and what is the Pareto Optimal outcome under collusion? Show that this outcome is not sustainable.
Suppose the government cuts its purchases through $120 billion. As a result, budget deficit is decreased by $40 billion, private domestic saving reduced by $10 billion,
Suppose that competition among several market makers forces the spread down to $2. How many goods are traded?
Let us assume that an economy in which there is no widely agreed upon form of money. In other words, suppose we are dealing with a barter economy.
Julia must select between two different designs for preventing closure, which will be in use indefinitely. Model 1st has a life of 3-years and cost of $8000, and maintenance of $1000 every year.
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