A primary example of such a cartel is OPEC which has a profound influence on the international price of oil. Firms often collude in an attempt to stabilize unstable markets‚ so as to reduce the risks inherent in these markets for investment and product development.[citation needed] There are legal restrictions on such collusion in most countries. There does not have to be a formal agreement for collusion to take place (although for the act to be illegal there must be actual communication between
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sMarginal Benefit / Cost and Scarcity Paper Uploaded by 989 on Aug 1‚ 2005 -------------------------------------------------------------------------------- Marginal Benefit / Cost and Scarcity Paper Define the concept of scarcity: Scarcity: The goods available are too few to satisfy individuals’ desires. Scarcity is a central concept in economics. Resources are scarce if any individual would prefer to have more of that good or service than they already have. Most goods and services
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IA 710 CLASS 1 Scarcity‚ shortage and substitutability 1. Answer all parts: a) What do you think is meant by the concept of constrained choice? Why is economics often described as the science of constrained choice? b) Explain how scarcity‚ choice and opportunity cost are relevant when choosing amongst alternatives? 2. Define the concept of “opportunity cost” and discuss various examples. 3. Explain how the concept of opportunity cost may be used to explain the following:
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Introduction As products’ safety is one of the primary responsibilities of supply chain members‚ it has been noted by legislators with the highest level of significance. Therefore‚ product liability is known as an issue which can jeopardize whole the business. There are many cases about companies who went bankrupt due to small potential liability issues which in normal circumstances nobody noticed and considered them as a factor. That is why only experienced and veteran attorneys handle product liability
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you will be creating your brand: please think about what you are saying about yourself when you do any work for someone else! 1. Consider a monopolist where the market demand curve for the produce is given by P = 520 – 2Q. This monopolist has marginal costs that can be expressed as MC = 100 + 2Q and total costs that can be expressed as TC = 100Q + Q2 + 50. a. Given the above information‚ what is this monopolist’s profit maximizing price and output if it charges a single price? Answer: MR
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a larger level of output than the minimum average total cost d. at the same level of output as the average fixed costs e. same as minimum marginal cost 2. The multiplant monopolist maximises profits when a. Marginal cost equals marginal revenue b. When marginal cost in each plant are equal c. When average cost in each plant is equal d. When marginal revenue in each plant is zero e. When he produces only in the low cost plant 3. If the market price is exactly equal to average cost‚
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C. total revenue exceeds total cost by the largest amount. D. total revenue equals total cost. E. both b and c 2. The function a decision maker seeks to maximize or minimize is the ________ function. A. optimal B. decision-making C. objective D. marginal E. none of the above 3. Choice variables A. determine the value of the objective function B. determine the constraint C. can only take on integer values D. cannot be continuous E. both c and d 4. For an unconstrained maximization problem A. the decision
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Economics 5315 Fall 1999 Managerial Economics Professor Henderson Final Exam 1. The Zinger Company manufactures and sells a line of sewing machines. Monthly demand for one its most popular models is given by the following relationship: Q = 400 – 0.5P where P is price and Q is quantity demanded. Total costs of production (including a “normal” return on owners’ investment) per month are: C = 20‚000 + 50Q + 3Q2 a. Express total profits (() in
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Managerial Economics Practical Applications of Marginal Analysis The most common use of marginal analysis is to find the profit maximizing activity level. To show how this is done‚ consider the following case of Storrs Manufacturing Company. Case Study: Storrs manufacturing company Storrs manufacturing company is located in Ankara. The company has developed and test-marketed the “Golden-Bear Golf Cart”‚ a newly and highly energy efficient golf cart. The product is unique and preliminary indications are
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should be considered when choosing among production possibilities‚ calculating the cost of capital‚ analyzing comparative advantages‚ and even choosing which product to buy or how to spend time. 2. *(a) what is Marginal Analysis? (b) Why Is Marginal Analysis Important in Economics? (c) What is the role of Marginal analysis? Marginal Analysis is the process of considering small changes in a decision (control variable) and determining whether a given change will improve the ultimate objective
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