Posts by Ashaki
Total # Posts: 7
At a recent board meeting, the president and CEO got into a heated argument about whether to shut down the firms plant in Miami. The Miami plant currently loses $60,000 monthly. The president of the firm argued that the Miami plant should continue to operate, at least ...
May 30, 2012
If all the assumption of perfect competition hold, why would firms in such an industry have little incentive to carry out technological change or much research and development? What conditions would encourage research and development in competitive industries?
May 30, 2012
The manager of All City Realtors wants to hire some real estate agents to specialize in selling housing unit acquired by the Resolution Trust Corporation (RTC) in its attempt to bail out the savings and loan industry. The commission paid by the RTC to the company to sell these...
May 29, 2012
When the price of corn dogs is $1.00, 5,000 corn dogs are demanded. When the price of corn dogs is $2.00, 2,500 are demanded. What is the price elasticity of demand for corn dogs?
May 13, 2012
Movie attendance dropped 8 percent as tick prices rose a little more than 5 percent. What is the price elasticity of demand for movie tickets? Could price elasticity be some-what overestimated from these figures? That is, could other things have changed, accounting for some of...
May 12, 2012
The owner-manager of Good Guys Enterprises obtains utility from income (profit) and from having the firms behave in a socially conscious manner, such as making charitable contributions or civic expenditures. Can you set up the problem and derive the optimization conditions if ...
May 11, 2012