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La Bella Pizza can produce a pizza for a marginal cost of $2. Its price of a pizza is $15. Could La Bella Pizza make a larger economic profit by offering a second pizza for $5? Use a graph to illustrate your answer.
How might La Bella Pizza make even more economic profit? Would it then be more efficient than when it charged $15 for each pizza?
an increase in the demand for new housing in Saskatchewan.
Crowding-out occurs when:
Calculate the present worth of the following geometric gradient series cash flow: Annual interest Rate =9.64 %, Annual cash flow increases 29% each year, The first year value is $65 and the series is 9 yrs long.
The overhaul will cost $80,000, and i = 12%. What does the overhaul add to the total annual cost for owning the equipment?
Refer to the Porter and Thomas paper. According to Porter and Thomas, what are sports teams doing to cause persistent shortages? How can these shortages be rational, profit-maximizing pricing strategies? You will need around 100 words to thoroughly a..
Pre-trade: Katniss is hunting 6 squirrels and gathering 2.5 quarts of berries per day. Gale is hunting 4 squirrels and picking 1.5 quarts of berries per day. Show that with trade, they can both be better off. Give a rational exchange rate of squirrel..
Two long transmission lines connected at z = 0, where the reflection coefficient is measured to be 0.5.
A machine costs $5,240 and produces benefits of $1,000 at the end of each year for 8 years. assume an annual interest rate of 10%. a) What is the payback period in years?
Analyze the differences and similarities among firms for two different market structures: Monopoly and Monopolistic Competition. Clearly demonstrate how both types of firms determine the quantity (Q) to produce that maximizes profit.
Brazil has a population of about 200 million, with about 145 million over the age of 15. Of these, an estimated 25 percent are functionally illiterate. The typical literate individual reads only about two no academic books per year, which is less tha..
Consider a three-period model of household choice. The real interest rate is 4 percent. A household wants to have $10,000 available for consumption during last period of life (retirement). Using the household’s wealth constraint, how much does it hav..
Suppose that the government increases spending from G to G1 while simultaneously raising taxes in such a way that, at the initial level of output, the budget remains balanced. Show the effect of this change on the aggregate demand schedule. How does ..
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