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Suppose that the Ford motor company can produce any quantity of cars at a constant marginal cost equal to $15,000 and a fixed cost of $20 million. You are asked to advise theCEO as to what prices and quantities Ford should set for sales in Europe and in the U.S. The demand for Fords in each market is given by:
where the subscript E denotes Europe, the subscript U denotes the United States, and all prices and costs are in thousands of dollars. Assume that Ford can restrict U.S. sales to authorized Ford dealers only.
a. What are the profit-maximizing prices and quantities of Fords for the European market? the US market?
b. What is the total profit?
Consider a perfectly competitive market where market demand is given by Qd=30-P and market supply is given by Qs=2P. In this market, the government has imposed a production quota of 10.
a bond with no expiration date has a face value of 10000 and pays a fixed 10 percent interest. if the market price of
Determine whether each of the following would cause a shift of the aggregate demand curve, a shift of the aggregate supply curve, neither, or both. Which curve shifts, and in which direction What happens to aggregate output and the price level in..
A doctor earns $250,000 per year, while a professor earns $40,000. They play tennis against each other each Saturday morning, each giving up a morning of relaxing, reading the paper, and playing with their children. They could each decide to work ..
riordan manufacturing has decided to make a change to companys customer management system. the company does not
Draw an iso-cost line for this firm, showing combinations of L and K that cost $6 and another iso-cost line showing combinations that cost $12. What are the slopes of these iso-cost lines?
What is the maximum amount of harvest that can be sustainably achieved in this system? What level of biomass generates this amount of harvest?
a.In certain industries, firms buy their most important inputs in markets that are close to perfectly competitive and sell their output in imperfectly competitive markets. b.Cite as many examples as you can of these types of businesses.
What factors need to be considered to produce an appropriatemission statement and vision statement for the organization How long or short should a mission and vision statement be
What is the most important factor leading to rising health care costs in the United States since 1980? a)The increased use of expensive medical technology b)Teh aging U.S. Population
Suppose that a firm sells in a competitive market at a fixed price of $12 per unit. The firm's cost function is: C = 200 + 4Q. Determine the minimum quantity at which the can break even. Are there multiple break even points? Explain in detail.
part 1. annie has an income of 120 an hour popcorn cost 6 a bag and cost 5 a six pack cola.a.draw a graph of annies
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