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Question: Venus is opening a tennis school. She plans to hire a marketing graduate to promote and manage the school at $20 an hour. Venus is also considering buying or leasing a new tennis ball machine. The purchase price of the machine is $1,000 and after three years it is worthless. The annual cost of leasing the machine is $500.
a. In which factor markets does Venus operate?
b. What is the price of the capital equipment and the rental rate of capital?
a. All your costs are fixed and your goal is to maximize the total revenue received from selling advertising. Suppose that the expected number of viewers is one million people. What price should you charge? How many minutes of advertising will ..
What circumstances might you expect barter to reemerge in an economy that has fiat money as a means of payment - high inflation and the public loses confidence or trust in fiat money, barter may reemerge.
Assuming that the central bank follows a simple interest rate target rule, write an essay on the determination of the money supply that would maintain equilibrium in the money and bond markets. Discuss how the central bank can ensure this money su..
Suppose there are a wide range of plant sizes in an industry. What do you conclude about the shape of the average cost curve if the plants are in the same area?
The accompanying diagram shows foreign-owned assets in the United States and U.S.-owned assets abroad, both as a percentage of foreign GDP.
What was the impact of the near failure of Bear Stearns and the failure of Lehman Brothers on Money Markets? What actions did the Federal Reserve and the Treasury Department take? What were the impacts of the decisions if any?
Consider a pension fund manager for Time Warner, that must sell some Time Warner stock in three months to meet raise cash to meet pension obligations.
Explain how this tax or subsidy would achieve the socially efficient level of output. Among the various interested parties - the monopoly firm, the monopoly's consumers, and other taxpayers - who would support the policy and who would oppose it?
List three businesses that can exist today, because of the World Wide Web that could not have existed before advent of this technological communication system.
Economics has difficulty in explaining why wage rates for individuals vary across occupations and industries and within occupations and industries. Discuss
give an example of a decision that is rational ex-ante but irrational ex-post. under what conditions will this
Can you make similar cases for subsidizing micro saving? On grounds of equity? On grounds of enhancing efficiency?
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