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ECON 545 Week 8 Final Exam (DEVRY)
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1.
Question :
(TCO A) Suppose you are hired to manage a small manufacturing
facility that produces Widgets.
(a.) (15 points) You know from data collected on the Widget Market that
market demand and market supply have both increased recently. As
manager of the facility, what decisions should you make regarding
production levels and pricing for your Widget facility?
Remember that supply and demand are about the market supply and
market demand, which is bigger than your own company. You are being
given data on supply and demand for the whole market and are being
asked what effect that has on you as a small part of that market.
(b.) (15 points) Now, suppose that following the supply and demand
changes in (a), a substitute good goes up in price, and your costs of
production increase. What new decisions will you make regarding
production levels and pricing for your Widget facility?
2.
Question :
(TCO B) Here is some data on the demand for marshmallows:
Price Quantity
$10 100