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If you were a taxi driver, the daily revenue and costs are as the following:
Revenue:
$240
Variable costs (gas, your labor...): $180
Mortgage payment for car: $50
License Fee: $40
For profit-maximization, will you operate your taxi business today? What is the minimum daily revenue to keep operation in the short-run? What is the minimum daily revenue to keep the operation in the long-run? Please show the calculation.
Explain the difference between income effect and price effect in intergovernmental aid systems by also explaining the difference between foundation aid systems and power-equalizing aid systems
Suppose an economy that is initially at full employment faces a substantial increase in the factor cost of production. Discuss (with the aid of aggregate output market and money market diagrams) the short-run effect on output, unemployment, general p..
A change in the real one supply can result either from a change in the nominal money supply through Federal Reserve policy (holding the price level conatant) or from a change in the price level (holding the nominal only supply constant). the change i..
Drawing on current business publications, find out some updated facts for each case that support this theme.
q.as ceo of firm a you and your management team face the decision of whether to undertake a 200 million rampd effort to
Describe the current state of the U.S. economy using the two monetary aggregates (M1 and M2) currently published by the Federal Reserve. In your description, illustrate the trends of the two monetary aggregates. Evaluate what the Federal Reserve Bank..
Determine the ways your company is dealing with the moral hazard problem and suggest best practices used in the industry to deal with it. (southwest Airlines)
The difference between the price the firm sells a good for and the price it paid other firms for intermediate goods is called. The annual charge that estimates the amount of capital equipment used up in each year’s production is called. Which of the ..
By mid-2009, U.S. investment expenditure had fallen to $1.5 trillion and the real interest rate had risen to 4.5% per year. What caused the collapse of investment and the rise in the real interest rate?
Compare the expected present value of net benefits of US social security for (a) earlier vs. later generations, (b) men vs. women, and (c) people who were married for over 10 years vs. people who were not.
The countries of Aurora and Solaria have the same fundamentals, but Aurora is twice as rich as Solaria. In the context of the Solow model: (a) Which country will have the higher growth rate in the short run? (b) In the long run? Note: Use diagrams to..
Suppose you win a lottery, and your after-tax gain is $40,000 per year until you retire. As a result, you decide to work part time at 32 hours per week in your old job instead of the usual 40 hours per week. Calculate the annual income effect on hour..
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