Management Economics (ECON1110)
New Mexico State University
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Economics Chapter 3 summary
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summary & notes on economics chapter 3.
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Class lecture notes
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Chapter 2 on economics. Studying notes taken during class
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Class annotations
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class notes to help when studying
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Management Economic EconLab Chapter 7
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Use a cell reference or a single formula where appropriate in order to receive full credit. Do not copy and paste 
values or type values, as you will not receive full credit for your answers. 
The production function for a firm is q = -0.6L 
3 
 + 18L 
2K + 10L where q is the amount of output, L is the number of 
labor hours per week, and K the amount of capital. The wage is $100 and the rental rate is $800 per time 
period.
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Management Economic EconLab 6-1
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Use a cell reference or a single formula where appropriate in order to receive full credit. Do not copy and paste values or type values, as you will not receive full credit 
for your answers. 
A competitive firm’s cost of producing q units of output is C = 18 + 4q + q 
2 
. Its corresponding marginal cost is MC = 2q + 4.
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Management Economic EconLab 7-1
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Use a cell reference or a single formula where appropriate in order to receive full credit. Do not copy and paste values or type values, as 
you will not receive full credit for your answers. 
The marketing department of Acme Inc. has estimated the following demand function for its popular carpet deodorizer, Freshbreeze: Q = 100 – 5p, 
where Q is the quantity of an 8 oz box sold (in thousand units) and p the price of an 8 oz. box
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Management Economic EconLab 8-2
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Use a cell reference or a single formula where appropriate in order to receive full credit. Do not copy and paste values or type 
values, as you will not receive full credit for your answers. 
Lucy wants carpets and paintings for her office. Her company has given her a budget of $7,200 for this purpose. Persian carpets of the 
size that she wants can be purchased for $900 each and paintings from a local Native American artist cost $400 each.
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Management Economic EconLab 8-3
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Use a cell reference or a single formula where appropriate in order to receive full credit. Do not copy and paste values or type values, as you will not 
receive full credit for your answers. 
 
The demand and supply functions for oil in a small isolated country are Qd = 210 - 1.5p and Qs = -140 + 2p, where p is the price per barrel and quantities are in 
millions of barrels per year:
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