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A company is considering building a bridge across a river. The bridge would cost $3 million to build and nothing to maintain. The anticipated demand over the lifetime of the bridge is x = 800 - 100p, where x is the number of crossings (in thousands) given the price per crossing p.
a. If the company builds the bridge, what will be the profit-maximizing price?
b. Will that price lead to the ancient number of crossings? Why or why not?
c. What will be the company's profit or loss? Should it build the bridge?
d. If the government were to build the bridge, what price should it charge?
e. Should the government build the bridge? Why or why not?
Draw a game tree like the one shown in Figure 27.10 on page 588 and predict the outcome of the game. How will the turtle firm respond to the threat of entry? Will the frog firm enter the market?
Computers cost $125 each and you must pay each worker $30 per hour.
what is the cost SouthAfrican government providing and to whom?
Does total investment (public and private) increase or decrease in this case?
An engineering department is considering purchase of an advanced computational fluid dynamics software system to enhance productivity. the initial cost of the software is $55,000 but is expected to result in efficiency savings of $25,000 the first..
An engineer wanted to celebrate graduating and getting a job by buying $2,400 of new furniture. Luckily the store was offering six-month financing at the low interest rate of 6% per year compounded monthly. Calculate the amortization schedule.
People end up tossing 12% of what they buy at the grocery store (Reader's Digest, March, 2009). Assume this is the true population proportion and that you plan to take a sample survey of 540 grocery shoppers to further investigate their behavior.
Determine the quantity that would be produced at this price and the maximum profit possible.
You are given the following information on the bond market: Money available on January 1, 2004: one thousand dollar interest rates on January 1, 2004, on bonds of different maturities: 1 year, 4%; 2 year, 5%; 3 year, 5.5%; 4 year, 6%
Illegal discrimination results from behaviors or actions by an organization or managers within an organization that cause members of a protected class to be unfairly differentiated from others.
Prove that the steady-state equilibrium is unique and globally (saddle-path) stable. What is the impact of a higher rate of technological progress?
Kean University Professor Henry Saffer and Wharton School of Business Professor Dave Dhaval estimated that if the alcohol industry increased the prices of alcoholic beverages by 100 percent underage drinking would fall by 28 percent and underage b..
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