You manage a company that competes in an industry that is comprised of four equal-sized firms that produce similar products. a recent industry report indicates that the market is fairly saturated, in that a 10 percent industry-wide price increase would lead to a 18 percent decline in units sold by all firms in the industry. currently, congress is considering legislation that would impose a tariff on a key input used by the industry. your best estimate is that, if the legislation passes, your marginal cost will increase by two dollars. based on this information, what price increase would you recommend if the tariff legislation is passed by congress?

Your parents have accumulated a $170,000 nest egg. they have been planning to use this money to pay college costs to be incurred by you and your sister, courtney. however, courtney has decided to forgo college and start a nail salon. your parents are giving courtney $20,000 to her get started, and they have decided to take year-end vacations costing $8,000 per year for the next four years. use 8 percent as the appropriate interest rate throughout this problem. use appendix a and appendix d for an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. how much money will your parents have at the end of four years to you with graduate school, which you will start then?