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1. A hotel owner, having heard that new hotels plan to open in his area, says, "we have too many hotels in this town already. Statistics show that vacancy rates average 20 percent on any given night." Assuming this is correct, evaluate his negative assessment of the situation in terms of business-stealing and product-variety externalities.
2. Explain the theory that education acts as a signaling device' How does this contrast to the theory of education as an investment in human capital?
3. Explain the difference between inferior goods and normal goods' As a developing economy experiences increases in income (measured by GDP), what do you predict will happen to the demand for inferior goods?
Assume the firm does enter the market and that, over time, increasing competition causes the price of telephones to fall to $35. Under these circumstances, what would be the firms optimal output, price and profit (or loss).
Elucidate the opportunity costs for the manager of being in this business relative to returning to his old job. what is the economic profit of the business.
Calculate the net cash flows for the year 0 and the years 1 thru 6. What is the NPV of the project? What is the modified internal rate of return for this project?
Suppose that the comparative-cost ratios of two products—mangoes and sardines—are as follows in the hypothetical nations of Mangolia and Sardinia: Mangolia: 1 mango = 2 cans of sardines Sardinia: 1 mango = 4 cans of sardines In this scenario, _______..
Characteristics of Proprietorships what percentage of sole proprietorships is engaged in retail trade? Why might more sole proprietorships be engaged in services rather than manufacturing?
suppose that you invest $100 today in a risk-free investment and let the 4 percent annual intrest rate compound. Rounded to the full dollars, what will be the value of your investment 4 years from now?
If due to over-harvesting of coconuts they become more difficult to acquire, taking 2 hours to pick one coconut, Illustrate what combination will maximize utility.
Describe your matter, with a brief summary of the key things which make your matter interesting. Illustrate what are the key positive also normative questions surrounding your matter.
To help you reach a $5,000 goal five years from now, your father offers to give you $500 now. You plan to get a part-time job and make five additional deposits, one at the end of each year. (The first deposit is made at the end of the first year). If..
q.assume firm ys production function is given by the following cobb douglas equation q 0.5 x l0.6 x k0.5 where l
Illustrate what percentage does equilibrium cost level differ from its initial value if output increases to Y = 106 (and r remains at 0.10).
Assume Microsoft chooses to produce 80 million copies of the software per year and sells copies of the software to retailers at $199 per copy.
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