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1. What effect, if any, does each of the following events have on the price elasticity of demand for corporate-owned jets?
a. The cost of manufacturing corporate jets rises.
b. Reduced corporate earnings lead to cuts in travel budgets and increase the share of expenditures on corporate jet travel.
2. Since the movie, Avatar, 3-D movies have been popular and charged at a higher price, compared with the traditional 2-D movies. Please analyze the impact of 3-D movies on
a. Price elasticity of demand on 2-D movies.
b. Total revenue (including 2-D and 3-D movies) of theater box offices.
Purchasing credit life or disability insurance protection is usually 1) required in order to make the loan 2) non-negotiable 3)at the lenders option 4)very costly 5)a good idea for the borrower
A monopoly has the market demand Q = 1000-1000P, with a marginal cost, MC = 0.28. What is the optimal price and quantity for perfect competition? What is the optimal price and quantity for monopoly?
The Profit Maximizing condition for firms facing perfect competition is 1) Marginal Revenue = Marginal Cost and 2) Marginal Cost must cut through Marginal Revenue from below. Market structure is measured in the ability to set the price of the output...
Suppose Lyle's utility function is U= XY + X + Y, X,Y greater than or equal to 0. Determine the optimal quantities of X and Y that Lyle should purchase as well as the maximum amount of utility he will receive at the optimum
In your own words, explain what corporate social responsibility (CSR) is. Name two examples of social responsible companies you know and explain why you consider them so.
Discuss the Social Security System, current status and future outlook. Be thorough and focus on the economic considerations. Cite at least 6 sources.
Suppose 1-year T-bills currently yield 7.00% and the future inflation rate is expected to be constant at 4.50% per year. What is the real risk-free rate of return, r*? Disregard any cross-product terms, i.e., if averaging is required, use the arithme..
bananas can be produced. Between these points. Illustrate what is the opportunity cost of producing a pound of apples.
Suppose that Apple first announces a quantity of iPhones, then Verizon announces a price for data plans, then Apple announces a price for iPhones. What are those quantities and prices? Suppose Apple has a monopoly on iPhones and Verizon has a monopol..
Supply and Demand in the Cell Phone Market. As wages increase for Apple Workers, what happens to the price and quantity of iphones? As the price of drone phones decrease, what happens to the price and quantity of iphones? If the government taxes cell..
Assume a firm is currently employing 20 units of capital and 100 units of labor in its production process. Assume also that the marginal product of the 20th unit of capital is 40 units of output, the marginal product of the 100th unit of labor is 10 ..
Which of the following is a rate that should theoretically serve as a floor for the Fed funds rate? If a security dealer "repos securities," they are a. An increase in the supply of reserves in the banking system leads to an increase in the Fed fund..
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