“The demand function for good X is Qdx = a + bPx + cM + e, where Px is the price of good X and M is income. Least squares regression reveals that =…
September 3, 2020
There are four consumers willing to pay the following amounts for an electric car: Consumer 1: $70,000 Consumer 2: $20,000 Consumer 3: $80,000…
September 3, 2020

Suppose you have a production technology that can be characterized by a learning curve. Everytime you increase production by one unit, your costs decrease by $6. The first unity costs you $64 to produce. If you receive a request for proposal (RFP) on a project for four units, what is your break-even price? Suppose that if you get the contract, you estimate that you can win another project for two more units. Now what is your break-even price for those two units?

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