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The average price of gasoline in 2005 was $2.31 per gallon. In 1993, the average price was $1.07. The average annual rate of increase in the price of gasoline over this 12-year period is 6.62%. If we assume that the price of gasoline will continue to inflate at this rate, how long will it be before we are paying $6.62 per gallon?
(HINT: skip units and round up to 2 decimal points, e.g. 0.12)
Suppose that the demand function for regional airline Eastern Shuttle, Inc., is Q = 52,000 - 100P + 500PR + 0.45I where PR is the average price of rail service in their service area and I is the average income in the metro area. What is the price ela..
Explain how each of the following will affect the relative values of the dollar and the French franc: What will happen to a country that fixes the price of foreign exchange below equilibrium?
Develop a statement that expresses the extent to which cost-estimating topics also apply to estimating benefits. Provide examples to illustrate
As a political risk analyst, you have been asked to prepare a short report detailing the possible consequences to business operations of a multi-national enterprise (MNE) working in the oil extraction sector in a politically-unstable country in the M..
Suppose a firm faces the demand curve which gives a constant price elasticity of demand of -2. (Lerner Index) If the firm's marginal cost is constant at $2, what is the profit-maximizing price and quantity? If the firm's marginal cost increases to a..
Can the researcher say with a 0.05 level of significance that the proportion of children not completing primary school is more than 1%.
Illustrate what is the difference among the short-run also the long-run for a perfectly competitive firm in terms of costs also profits.
Explain why primary goods can be expected to exhibit more price instability than manufactured goods. How could buffer stocks be used to reduce this instability?
Calloway Shirt Manufacturers sells knit shirts in two sub-markets. In one sub-market, the shirts carry Calloway's popular label and breast logo and receive asubstantial price premium. Are Calloway's current prices optimal? Management considers the $..
Consider the second stage of competition between Samsung, HTC and Sony. Once Apply has chosen some output level q1, Samsung, HTC and Sony will compete simultaneoulsy over their product quantities. Write down the best response functions for Samsung, H..
The blood bank wants to determine the least expensive way to transport available blood donations from Pittsburgh and Staunton to hospitals in Charleston, Roanoke, Richmond, Norfolk, and Suffolk. The supply and demand for donated blood is shown in Fig..
What are the three major types of unemployment? What are their causes? Discuss the costs associated with high inflation.
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