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The city of Cabernet is very popular for its production of wine. The inhabitants of the city have an aggregate demand for wine that can be described as follows:
where Qd is the demanded quantity in bottles of wine and p is the price in euros per bottle. The producers' aggregate supply is:
whereQs is the supplied quantity in bottles of wine. The city makes only one quality of wine. a) Search the equilibrium price and quantity.
b) Compute the consumer and producer surplus, as well as the total welfare in the city of Cabernet.
DIRECT TAXES A direct tax is one where the impact and incidence of the Tax is on the same person e.g. Income Tax, death or estate duty, corporation taxes and capital gains
structure of managerial economics
p=10, TC= 1000+2Q+.01Q^2, Q=?
define scarcity and oppurtunity cost.show how these concepts are useful in managerial decision making
how manager can apply scarcity and oppotunity cost in managerial decision making
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(Kinky Demand Curve) Short Period Kinked demand curve was first used by Prof. Paul M. Sweezy to elucidate price rigidity under oligopoly. In an oligopoly market, firm knows that
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gap between economic theory and business practice
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