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Smart Health is considering opening a 25th club. The company must choose between one of two towns in which to locate the new club. Both towns have populations of 22,000. However, one of the towns has a relatively high average income of $60,000, while the other has a relatively low average income of $45,000. The annual fixed costs of running the club in the high income town would be about $160,000, while annual fixed costs of running the club in the low income town would be about $70,000. Your job is to select the site for the 25th club and to determine the appropriate price for the one-month memberships.
Consider the market for vegan soup, where two firms, Kibble and Flesh Not, are in Stackelberg competition. Flesh Not observes Kibble's output level before choosing its desired output level. The market inverse demand curve for vegan soup is P: 18 - Q,..
In a simple economy (assume there are no taxes, thus Y is disposable income), the consumption function is C=750+0.6Y. Thus, automous consumption is _____ and the marginal propensity to consume is ______. A consumer chose income increases by 100$ will..
How is game theory relevant to oligopoly? Does it help to explain monopoly? Provide specific examples to support your answer. Are government policies subject to game theory by leaders of organizations? Provide specific examples to support your answer..
Why are entrepreneurs willing to supply goods and serices for consumers at attractive price - Is it because they care personally about the consumers?
Assume that demand for a commodity is represented by the equation formula p= 90-2Qd Supply is represented by the equation formula p=-5+3Qs where Qd and Qs are quantity demanded and quantity supplied, respectively, and P is price. Using the equilibriu..
In the Solow model, describe the effects of a permanent increase of foreign aid.
Describe the tragedy of the commons. What problems are presented by the tragedy of the commons for moral evaluation of technological development? How would you address these problems?
Recent monetary policy of the United States-Which of the following are factors that contributed to the crisis of 2008? Check all that apply.
What are the short run and long run effects of a one-time increase in the stock of labor (because of, for example, a particularly large cohort of college graduates joining the labor force)?
In the long run, if price is less than average cost. the market must be in long-run equilibrium. there is profit incentive for firms to enter the market. there is no incentive for the number of firms in the market to change. there is an incentive for..
A perfectly competitive firm is producing 75 units of output. the market price is $7 and the firm's marginal cost is $8. the firm should: In an asymmetric market for used card, which of the following could be used to avoid a thin market? In the marke..
How might the business be structured? What might be some of the legal issues that could arise in operating the business and selling the product? What are some of the agreements that might be needed?
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