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The retail price for a wrinkle-reducing injection is $550. Retailers buy directly from the manufacturer, who has a margin of 80 percent on their product. If the retailer margin is 40 percent, what is the manufacturer selling price to the retailer? What is the manufacturer’s cost for the product? For both the retailer and manufacturer, what is the dollar amount of gross margin (price minus selling cost is dollar gross margin)?
Adam Sandler has a utility function U(C, L) = C1/3L1/2. The wages now available to him are $9/hr. Non-wage income in royalties are $6 a day. Find the MRS for Leisure to Consumption to find the optimal ratio of Leisure to Consumption. Write out and dr..
q. i choose a sweater at the price of 12 in the past month. describe how each of the 4 factors contributed to the
A business called TopClass, Inc. has the following Costs and Benefits: Initial Cost: $70,000, Annual Costs: $7,500, Salvage Value: $10,000, and Benefits: $25,000 for years 1 and 2, $35,000 for years 3 and 4, $25,000 for years 5 and 6. The MARR is 10%..
What is the level of the M1 stock of money? Suppose the public’s holding of currency increases to $100 while, at the same time, the level of deposits remain constant at $200. What is the value of the new money multiplier (m’)?
In Metropolis, there are three types of houses: expensive, medium, and cheap. All households – regardless of what type of house they have – have the same marginal benefit curve for open space, which is a public good. Households can sort into differen..
Describe the scope of Public Finance. Explain different philosophical approaches to the role of the government. Describe the size of the government sector in the U.S.
The nominal interest rate
The median household income in Louisiana is approximately $52,000 per year, while the median household income in Massachusetts is about $79,000. From the perspective of trying to maximize your income per capita, which state will have higher increases..
Explain the economics of the taxi medallion system. This is discussed in the text and in numerous places on the web. Why did cities start the medallion system? Do you think it is a good idea? Explain the economics of the ride-sharing firms such as Ub..
There seems to be some evidence supporting the idea of a political business cycle. That is, the economy tends to experience particularly fast growth just prior to elections and slower growth or recessions some time after elections. Explain why and ho..
Would you change your business entity before you hire any employees? Why or why not? If so, what kind of entity would you select. Explain. Do your readings this week deter you from hiring any employees or continuing with your car detail business?
Does that face help explain why such governments would rather subsidize an industry’s export sales than its sales in the domestic market?
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