How economics applies to issue by developing model of choice
Some people claim that the "economic way of thinking" does not apply to issue such as health care. Explain how economics does apply to this issue by developing a "model" of individual's choices.
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What are the optimal prices for each product if you sell these products separately? What are your firm's profits? Explain.
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As of December 31, 2012, Nilsen Industries had $2,000 of raw materials inventory. At the beginning of 2012, there was $1,600 of materials on hand. During the year, the company purchased $324,000 of materials; however it paid for only $314,000. How
find the firm's optimal quantity, price, and profit (1) by using the profit and marginal profit equations and (2) by setting MR equal to MC.
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