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Q1. Why might you expect to see flat royalty payments in home-based franchises but revenue-based royalties in franchisees that operate from commercial buildings? (Hint: Among the most popular home-based franchises are cleaning services offered to businesses, and delivery services for seniors who live at home.)a. Is your explanation consistent with the fact franchised tutoring services often charge a fixed royalty per student enrolled?
Q2. A monopolist has the following demand equation: Q=200-2P. Its marginal cost function is MC=10+2Q.
A. What is the equilibrium quantity and price?
B. Assume a tax of 20 is applied to the monopolist. What is the equilibrium quantity and price?
C. Calculate the tax incidence of the buyers and the monopolist.
Discuss and explain similarities and differences in the roles economists play as policy makers and as scientists.
If you want to make four equal payments on each January 1 from 2013 through 2016 to accumulate the $1,000, how large must each payment be.
The cost of the grapes may be as much as 60% of total production costs but varies greatly from lower-quality inexpensive wines to the highest quality wines.
He plans to marry at about the end of year 6 and will skip the investment contibutions that year. How far below or above his $300,000 goal will he be?
Derive Chenyu's consumption function in terms of her annual income Y and initial wealth W according to the life-cycle model.
Consider the following short-run production function: q = 5L2 - 1/3L3. Illustrate at what level of L do diminishing marginal returns begin. At what level of L do diminishing returns begin.
Illustrate what would happens to P* if there is a decrease in demand followed by an increase in supply followed by another decrease in demand.
Determine the profit of the Restaurant. If the company were to produce as a perfectly competitive firm, how much would it produce? What price should it charge as a competitive firm?
The college has annual fixed costs of $10 million, also the variable cost for every additional student is $5,000.
Explain basic idea behind Big Push model. How can O-ring theory help explain existence of a low-level equilibrium that an economy may find itself.
The market allows for proportional representation of minorities, but minorities must yield to the views of the majority when activities are undertaken through government.” In your own words, explain the meaning of this statement. Is the statement ..
All farmers in Trivialand are self - employed and sell all of their wares to Super Duper. Elucidate the costs incurred by all of Trivialand's busines.
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