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Alexi and Tony own a food truck together that serves only twoitems, street tacos and Cuban sandwiches. Some customers purchase both goodstogether; therefore, they will always produce both goods.
Alexi and Tony can sell all the street tacos and Cuban sandwiches that they are able toproduce, and will split the revenue equally.
Suppose that Alexi and Tony can sell all their street tacos for $3.50 each and all their Cuban sandwiches for $3.50 each.
If each of them worked 20 hours per week, how should they split their time between the production of street tacos and Cuban sandwiches, if they wanted to maximize their revenue (recall they split the revenue equally)?
The owner of a new health spa estimates the avg customer's monthly demand for visiting the spa as Q-50-.25P. The cost of operating is C(Q)=3Q, where Q is the # of visits. The owner has been charging a $20/month membership fee and a $5 per-visit fee. ..
Why do some low-wage countries, such as China, pose a threat to manufacturers in industrial countries, such as the United States, whereas other low-wage countries, such as Haiti, do not?
Discuss tax systems and political philosophies associated with income inequalities. List and describe the relationship between the two tax principles and three tax systems discussed in this course. Include comments regarding the effects of tax on soc..
Why is the financial system of a country important for long-run economic growth? Why is it vital for economic growth that firms have access to adequate sources of funds? Explain. Why do businesses demand loanable funds? Explain what happens to the eq..
You are the manager of a firm that plans to expand the human resource base of its operation by hiring additional business school graduates over the next few years. That same article reports that the shakeup of upper-management is over at U.S. firms, ..
Wilderness Adventures has earnings per share of $2.45 and dividends per share of $1.05. The total equity of the firm is $850,000. There are 40000n shares of stocks outstanding. What is the sustainable rate of growth?
Bob as well as Nancy live in a new housing development as well as they would like to have fire hydrants installed to assist the fire department in case of a fire.
Which type of discrimination is easier to address legally—demand side or institutional?
Suppose that the required reserve ratio for checking deposits us 10% and that banks do not hold any access reserves. If the Fed sells $1 million of government bonds, what is the effect on the economy’s money supply?
Suppose there is a bill to increase tax on cigarettes by $1 per pack coupled with an income tax cut of $500. Suppose a person smokes an average of 500 packs of cigarettes per year--- and would thus face a tax increase of about $500 per year from the ..
Suppose you have hired a new worker, unfortunately you do not know if the worker is a shirker or a hard worker. Suppose working hard raises the probability of making a sale from 40% to 80% (thus raises the probability of making a commission C by the ..
q1. an industrial breakthrough raises a countrys total factor productivity a by 10. show how this change involves the
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