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In radio ads, Mercedes-Benz of San Francisco says that it has been owned and operated by the same family in the same location for 48 years (as of 2010). It then makes two claims: first, that because it has owned this land for 48 years, it has lower overhead than other nearby auto dealers, and second, because of its lower overhead, it charges a lower price on its cars. Discuss the logic of these claims.
Indicate in each case the impact on external and internal balance as well as the appropriate policy response.
Assume that you are going to buy a car work $25,000. You will be able to make a down payment of $3,000. The remaining 22,000 will be financed by the dealer. The dealer computes your monthly payment to be $547.47 for 28 months of financing.
Mr. Ram finds that the tickets booth should offer 30% rather than 50% discounts to maximize revenue. what does this say about demand elasticity at; a ticket's face value price; at a 50% discounted price
Solve the forecast model
A. Calculate the 1998-2008 growth rate in sales using the constant rate of change model with annual compounding.B. Forecast sales for the years 2011 and 2013. The following table shows annual sales data for Stuff Happens.
Starting with the economy at potential GDP, a war in the Middle East pushes up energy prices temporarily. The Fed expands the money supply to accommodate the inflation.
A firm called Altobella Vineyard produces Concord grapes in a perfectly competitive market in which monthly demand is given by the equation Q = 1800 - 16P and monthly supply by the equation Q = -660 + 14P, where P is the price per crate of grapes.
Why is self-regulation by the audit profession in the US no longer in place?
On your diagram, show the deadweight loss that occurs because the output level is determined by a monopoly rather than by a competitive market.
Suppose that a state provides subsidies for a company to build plants that contribute to air pollution. Cleaning up this pollution causes the marginal cost of air cleanliness to rise by $210,000 at each degree of air cleanliness. What is the optim..
Jane's utility function is U(x,y) = 2 x2 y with associated marginal utility functions MUx = 4xy and MUy = 2x2. Jane has income I and prices of x and y are respectively given by Px and Py. a) Determine Jane's demand for x as a function of income and..
United Kingdom Supermarkets In October 2000 the competition Commission reported on the supplyof groceries from supermarkets in the United Kingdom. It containedthe following information.
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