houses tend to ask more if they paid more for the house. What fallacy are they making?
Salvatore’ s Chapter 3: a. Discussion Questions: 9. b. Problems: 1( a), 7, and 9.
Discussion Question 9: How would you react to a sales manager’ s announcement that he or she has in place a marketing program to maximize sales?
Problem 1( a): Given the following total-revenue function: TR = 9Q- Q2( a) Derive the total-, average-, and marginal- revenue schedules from Q = 0 to Q = 6 by 1’ s.
average-and marginal-cost schedules
Problem 9: With the total-revenue curve of Problem 1 and the totalcost curve from
Froeb et al.’ s Chapter 4: a. Individual problems: 4-5 and 4-6.
Individual problem 4-5: Your new insurance firm processes claims through its newer, larger high-tech facility and its older, smaller lowtech facility. Each month, the high-tech facility handles 10,000 claims, incurs $ 100,000 in fixed costs and $ 100,000 in variable costs. Each month, the low-tech facility handles 2,000 claims, incurs $ 16,000 in fixed costs and $ 24,000 in variable costs. If you anticipate a decrease in the number of claims, where will you lay off workers?