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1. Suppose a gym faces inverse demand p(qi) = a-bqi from each of N identical customers, and costs represented by C(Q) = cQ. Without competition, this would imply that , and.
The is one contract the gym offers.
1. There is another contract available, though, where the client agrees to give the gym a sum of money, F, out of which the gym would then pay clients f dollars for each workout. What does this second option look like? (That is, what are the optimal F and f?)
2. How does the optimal two-part tariff change when $t per-unit tax is introduced? (Assume that inverse demand is p(q) = a-bq, and costs are represented by C(q) = cq.)
A nation's net foreign investment position will worsen or decline if it's balance of payments shows a
Where Q is output of ice cream, and L is labor hours. In the short-run K is fixed at 100. If capital rents for $10 and wages are $5 per hour, state the Total Variable Cost (Short Run Total Cost) function.
Calculate MPC, MPS and the Multiplier if consumption expenditure increases by $4,250 as a result of increase in income from $40,000 to $45,000.
Calculating the price elasticity of supply. Brian is a college student who lives in San Diego and does some consulting work for extra cash. At a wage of $25 per hour, he is willing to work 4 hours per week. At $40 per hour, he is willing to work 10 h..
Between 2000 and 2009, several industrial nations, including Germany, Japan, Austria, Spain, Italy, Sweden, and Greece experienced a contraction of their working populations. This trend is expected to continue in the coming decade. How will it affect..
The 2010 oil spill in the Gulf of Mexico caused the oil firm BP and the US government to greatly increase purchases of boat services, various oil-absorbing materials, and other goods and services to minimize damage from the spill. Explain how your an..
Compensating differentials explain in part: how unions derive their bargaining power; why some people choose to aquire more human capital thatn others; how the income and substitution effects interact;
Consider this claim: “Markets are a good way to organize an economy as they guarantee that the allocation of resources in an economy will be efficient”. Define what is meant by an efficient allocation, then with the aid of graphs and accompanying int..
Which one of the following does not contribute to our huge trade deficit?
Suppose you are earning $12 an hour at the local grocery store. At that wage you have decided to work 20 hours a week. If your wage were to increase to $19 an hour, thinking like an economist using the economic decision rule, you would most likely ch..
What impact would you expect this to have on the Argentine economy?
Visit the website for J. Hilburn. In 5 sentences, what advice on pricing can you offer Hil Davis? And discuss in 5 sentences how Davis should implement.
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