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Taking this intoaccount, your marginal cost of a midsized automobile is $12,000. What price should you charge for a midsized automobile if you expect to maintain yourrecord profits?
Determine your optimal pricing strategy if you and your rival believe that the new Highlander is a"special edition" that will be sold only for one year.
the quantity supplied by fringe firms is 450. Given this, which of the following quantity-price combinations is represented by a point on the dominant firm's demand curve?
Setup costs for cutting are $240, and the cost of carrying one item for a year is $.50. Since cutting and sewing are done in the same plant, delivery of cut items to sewing is essentially instantane
In order to track our economy the us government reports each month on how much business spending and how much consumer spending takes place.
Construct a budget neutral subsidy in a market where demand is D: P = 16 - Q and supply is S: P = Q. Find welfare effects (changes in CS, PS, TS) resulting from the subsidy. Do not forget to account
Consider a market where demand is D: P = 18 - Q and supply is S: P = 0.5Q. Find market equilibrium, consumer surplus CS, producer surplus PS and total surplus TS.
Calculate the prices when the firm discriminates between the two consumers. Is this a good strategy, or should the firm charge the same price to both of them?
A firm has $1.5 million in sales, a Lerner index of 0.57, and a marginal cost of $50, and competes against 800 other firms in its relevant market. What price does this firm charge its customers?
Organically grown apples from 1.2 million boxes per year to more than 3 million boxes." If the market for organic apples is perfectly competitive, which of the following statements is inconsistent w
Draw a separate diagram what happens to the Supply and Demand graphs with your answer. what happens to equilibrium price and quantity.
Draw diagram following markets happens supply and demand graph the answer describe happens to equilibrium price and quantity. us air travel market AA ceases operations overnight.
How do you find firm profits, equilibrium firm output, market price and number of firms(under free entry) for a Cournot-Nash equilibrium with n-firm oligopoly.
Optimal use fee to maximize the club's profit. The club cannot price discriminate on either the use or the entry fee. The club's fixed cost is 1. What are the club's optimal use fee and the optimal
What pricing method would you advise Ricky's company to use? How much better (profit wise) is the best pricing method than the second most profitable pricing method?
Optimistic about the economy's future, according to a report released Tuesday..." How does this affect the U.S. economy? Use a Macro Picture to demonstrate.
Write down a WLS-transformed version of the model that has a homoskedastic error term. Then verify that your transformed model satisfies the zero conditional mean assumption and that it is homosked
The market demand is given by P = 306 - 3Q, where Q is the total amount of the good produced by all of the firms combined. How many firms will there be in long run equilibrium?
When the price of oranges increases from $1.00 per pound to $1.50 per pound, quantity demanded falls from 500 pounds to 400 pounds. Calculate the price elasticity of demand.
Compute Lerner Index (of market power) when the market is free-entry equilibrium. Describe mathematically & intuitively, how the overall market is determined by size of the market s & fixed
If the game were played with Player 1 moving first and player 2 moving second, using the backward induction method we went over in class, what strategy will each player choose?
Each firm has constant marginal cost equal to 12. There are no fixed costs. What will be the market price of the good? How much profit does each firm make?
Graph the old budget constraint (in leisure/income space), showing the overtime premium after 8 hours of work per day. Assume a maximum work day of 16 hours as we have been doing in class.
Compare and discuss the relative magnitudes of the substitution and income effects of the higher minimum wage for workers like Joe versus workers like Bill.
What would be the change in work incentives associated with policy B compared to policy A? The graph associated with this problem should be large and on a separate sheet of paper. Be sure to calibra