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- Suppose there's a firm considering expanding to foreign. The demand it faces at home is P = 9-3Q and the demand at foreign is P = 7-4Q. Given the technology the marginal cost is MC = 1, and the transport cost to move a unit of good across the two countries is t = 1. Fixed cost connected to R&D is F = 3 and the cost of a production plant is Pe = 1. There are no other costs. Calculate the profits if a) the expansion of the firm is through a horizontal multinational and b) if it is through a vertical multinational. What will the firm choose?You have just been hired by a forestry company as a consultant. The company wishes to know whether increasing or decreasing A-grade log prices will increase revenue. What information do you need? Suppose you have been given this information, what would you recommend?Please help; I'm confused on this one. I got d as my answer, but I feel the correct answer should be (C), an increase in supply since the marginal cost is being increased due to work safety regulations.
- Using the information given in problem 11 AND 12, please answer and show calculations for problem 12.Assume that a country is endowed with 2 units of oil reserve. There is no oil substitute available. How long the oil reserve will last if (a) the marginal willingness to pay for oil in each period is given by P = 8 - 0.61q, (b) the marginal cost of extraction of oil is constant at $4 per unit, and (c) discount rate is 2%?Please solve question
- Please answer letters a, b, and c.Are refridgerators elastic or inelastic? State determinants that support guess.Suppose the demand equation is 200x + 10p = 10000, where x is the num- ber of items sold when the per unit price is p dollars. Determine (a) the rev- enue function,(b) the domain of the revenue function,(c) the revenue derived from the sale of the 20th item the marginal revenu(de)wthen x = 20,level of production that maximizes the revenue,and the maximum revenue.
- Suppose the inverse demand curve on ore is P = 95 - 0.19 Q. Ore can obtained through a recycling program, or mining. The marginal cost of mining is MC1 = 6 q1, while the marginal cost of obtaining ore through recycling is MC2 = 11 + 2 q2. What % of total demand is satisfied by recycled ore ?The global microchip shortage is causing significant price increases for both new and used vehicles (and for a wide variety of other consumer products). Does this necessarily mean that the revenues earned by chip manufacturers will be up? Why or why not?An entrepreneur intends to sell his product for 6.4$ each. The daily cost or expenses can be expressed as x+9.1+.11x^2, where x is the no. of product sold daily. Find the no. of products that will maximize the profit per day.