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The total operating revenues of a public transportation authority are $100M while its total operatiing costs are $120M. The price per ride is $1, and the price elasticity of demand for transportation ia -0.4. The transportation authority has to eliminate its operating deficit.
What pricing policy should the transportation authority adopt? Why?
Small firms can discover the abilities of their workers more quickly than large ones because they can observe the workers more closely at a wide variety of tasks. Does it make sense for people with high abilities to go to small firms
In an expansionary fiscal policy to overcome current recession, the Federal Government increases its expending to improve the nation's physical infrastructure
Elucidate the liquidity trap is presently stopping the Japanese economy from recovering.
What level of aggregate output does the consumption curve cross the 45 degree line and derive the savings and consumption functions, and draw a graph showing these functions.
Given a perfectly competitive firm in the output market where: P0 = exogenous price, C(Q) = cost function where: C' > 0, C'' > 0. (a) State the firm's profit function in terms of Q. (b) Find the F.O.C. that maximizes profits at Q*. (c) Interpret the..
Elucidate the historical relationship between unemployment and inflation.
The questions posed are broad and open ended so be careful to allow yourself enough research and planning time.
Suppose that the production of $1 million worth of steel in Canada requires $100,000 worth of taconite. Canada's normal tarrif rates for importing these goods are 20% for steel and 10% for taconite. Given this information, calculate the effective ..
Why might a parent company like McDonalds or Hilton choose to franchise its local outlets rather than own them and staff them with employees In many smaller cities all McDonald's outlets are owned by the same franchisee. Why is (or isn't) this fac..
Mention and describe the three theories for why the short-run aggregate-supply curve is upward sloping.
Suppose a friend you know requires a mortgage loan to purchase a house. Your friend can purchase it now or wait until later and is unsure of what to do.
Suppose that the Japanese government relaxes its controls on imports by Japanese companies. Other things being equal, how should this affect the.
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