When does the Elasticity of Supply of commodity is equal to Unity?

I think the answer in Mankiw Solutions is wrong. I need a DETAILED explanation please!!!

After spending $300,000 for research and development chemists at diversified citrus Industries have… Show more After spending $300,000 for research and development chemists at diversified citrus Industries have developed a new breakfast drink. The drink called Zap will provide the consumer with twice the amount of vitamin c currently available in breakfast drinks. Zap will be packaged in an 8-ounce can and will be introduced to the breakfast drink market, which is estimated to be equivalent to 21 million 8-ounce can nationally. One major management concerns is the lack of funds available for marketing. According management has decided to use newspapers (rather than television) to promote Zap in the introductory year and distribute Zap in major metropolitan areas that account for 65 percent. Newspaper advertising will carry a coupon that will entitle the consumer to receive $.20 off the price. The cost of the newspaper advertising campaign(excluding coupon returns). The cost of the newspaper advertising campaign will be $250,000. Other fixed overhead costs are expected to be $90,000. Management has decided that the suggested retail price to the consumer for the 8-ounce can will be $0.05. The only unit variable costs for the product are $0.18 for materials and $0.06 for labor. The company intends to give retailers a margin of 20 percent off the suggested retail price and wholesalers a margin of 10 percent of the retailers cost of the item. a. At what price will Diversified Citrus industries be selling its product to wholesalers, and what is the contributions per unit for zap and the break-even unit volume in the first year and also what is the first-year break-even share of market • Show less

Suppose the banking system as a whole has $600 billion in deposits and $66 billion in reserves, w… Show more Suppose the banking system as a whole has $600 billion in deposits and $66 billion in reserves, with a reserve ratio of 11 percent. What happens to the stock of money if the Fed lowers reserve requirements by changing the reserve ratio to 10 percent? • Show less

Why is the change in reserve requirement not frequently used to control the supply of money?

The city of Puni has 10 banks of various sizes. Bank A has 18 percent of all Puni’s deposits, bank B… Show more The city of Puni has 10 banks of various sizes. Bank A has 18 percent of all Puni’s deposits, bank B has 15 percent, bank C has 12 percent, bank D has 10 percent, the next 5 banks have 8 percent each, and the smallest bank has 5 percent. Suppose that banks A and D propose a merger at the same time that banks B and C propose a merger. You, as the banking structure analyst at the Federal Reserve, must analyze the competitive situation and determine whether either or both of the mergers should be allowed. Write up you analysis as a recommendation to the Federal Reserve Board, which will use your analysis to make a decision. Be sure that your answer includes the numerical considerations relevent to the case. • Show less

Look in the latest Federal Reserve Bulletin (or on the Internet at the Federal Reserve Board’s Web s… Show more Look in the latest Federal Reserve Bulletin (or on the Internet at the Federal Reserve Board’s Web sie: www.federal reserve.gov), and find the current set of reserve requirements that banks must meet. Then calculate the reserve requirements for banks with the following amounts of transactions deposits. Calculate both the marginal reserve requirement (the additional amount required reserves per dollar of of additional transactions deposits) and the average reserve requirement (required reserves divided by transactions deposits). Consider four banks with the following amounts of transactions deposits: a. $3.8 million b. $28.9 million c. $193.0 million d. $5.7 billion • Show less

Suppose there are only two countries, Iraq and Iran, producing oil in the world (so they are both o… Show more Suppose there are only two countries, Iraq and Iran, producing oil in the world (so they are both oligopolists). Assume the leaders of the two countries believe he payoff to alternative oil production are as follows: Iraq’s Decesion Iraq’s Decesion High Production Low Production Iran’s Decesion High Production $40 billion profit for Iraq $40 billion profit for Iran $30 billion profit for Iraq $60 billion profit for Iran Iran’s Decesion Low Production $60 billion profit for Iraq $30 billion profit for Iran $50 billion profit for Iraq $50 billion profit for Iran (a): when Iraq chooses high production, Iran’s best decision is (a1) high production (a2) low production (b): when Iraq chooses low production, Iran’s best decision is (b1) high production (b2) low production (c): given answers of (a) and (b), Iran’s dominant strategy is (c1) high production (c2) low production (d): by symmetry, Iraq’s dominant strategy is (d1) high production (d2) low production (e): the Nash equilibrium is______________________________________________ • Show less

1 – What are your recommendations for U.S. education policy to increase economic growth? 2 – Can for

The national Widget Company Purchased a computer system on January 1, 2012. The hardware expenses we… Show more The national Widget Company Purchased a computer system on January 1, 2012. The hardware expenses were as follows: $3900 on January 1, $500 on June 1, and $900 on November 1. There were also software fees of $350 per month, paid at the end of each month. Do the following using an annual interest of 8.0% and monthly compounding: a) Draw a complete time line for the costs associated with the purchases of this computer system. b)Calculate the present worth of all of the costs on January 1, 2012 c) If an option existed for an equivalent computer system to be purchased for $810 per month, paid at the end of each month in 2012, should they take this plan instead? Explain Answer! Show full work for rating!! • Show less