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An entrepreneur plans to convert a building she owns into a video-game arcade. Her main decision is how many games to purchase for the arcade. From survey information, she projects total revenue per year as R = 10,000Q = 200Q2, where Q is the number of games. The cost for each game (leasing, electricity, maintenance, and so on) is $4,000 per year. The entrepreneur will run the arcade, but instead of paying herself a salary, she will collect profits. She has received offers of $100,000 to sell her building and a $20,000 offer to manage a rival's arcade. She recognizes that a normal return on a risky investment such as the arcade is 20%. As a profit maximizer, how many games should she order?
Mention and describe the three theories for why the short-run aggregate-supply curve is upward sloping.
Compute the income elasticity of demand for product below, by using average values for quantities and incomes.
Draw a diagram describing autarky and a pattern of comparative advantage for your example.
Discuss the upshot of this policy in terms of a new equilibrium. Is this policy likely to have a negative repercussion on the crime rate? Can you come up with an idea concerning a major drawback of this policy?
Explain why the authors cite ethnically segmented markets as a factor that holds back private sector development and building entrepreneurial capacity.
Graph these data using "dollars" on the vertical axis and "quantity" on the horizontal axis. At what output is revenue maximized?
What government officials increase the price of parking ticket from $40 to $50; they are surprised that their revenue actually falls. What happened?
Imagine the opera has a capacity of 3000 seats and that all costs are fixed. If they can discriminate between the two groups, what is optimal price to charge to each group and how many tickets will each group buy?
Answer the following questions as these general questions pertain to the specific issue selected.The questions that you will cover with respect to your choice of broad social issue in the paper are given.
15 page term paper on International Business from economic view point. The topic is effect of corruption on Chinese and Indian economy and how India's IT sector (or could be any other sector in which compared to China the corruption is less) is ab..
If the government starts welfare policy which pays B to all non workers and 0 to all workers, at what value of B will Mike opt out of the labor force and go on welfare?
Explain how the distinction between expected and unexpected inflation is important to the distributional effects of inflation.
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