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Suppose you just returned to Albuquerque from a trip to the United Kingdom. You were really impressed with the rail system but it seemed to be much more expensive than the Rail Runner. As noted above, a Rail Runner ticket is $10 for the approximately 70-mile trip from Albuquerque to Santa Fe. A similar train trip in the UK from London to Cambridge is £23.20. One US dollar currently equals 0.7 British pounds
What is the real difference in the cost of the Rail Runner in the similar trip in the UK using US dollars?
The Theory of the Firm document, the Friedman article, and the information in chapter 4 argue that the main goal of a firm in a market economy is to maximize profit (shareholder wealth) over the long term. However, SEC regulations require U.S. corpor..
A certain engine lathe can be purchased for $270,000 and depreciated over three years to a zero salvage value with the SL method. This machine will produce metal parts that will generate revenues of $180,000 (time zero dollars) per year. Determine th..
Your firm faces considerable revenue uncertainty because you have to negotiate contracts with several customers. You forecast a 20 percent chance that your revenues will be $200,000, a 30 percent chance that your revenues will be $300,000, and a 50 p..
A monopoly is considering selling several units of a homogeneous product as a single package. A typical consumer’s demand for the product is Qd = 90 - 0.25P, and the marginal cost of production is $120. Determine the optimal number of units to put in..
The following table is a record of the data of a competitive firm on labour and output: Reproduce the above table on your answer sheet and complete the table. How many units of labour should be employed to maximise profit? Briefly explain your answer..
Some airline executives have called for "re-reregulation." Why might an executive of an airline prefer to operate in a regulated environment?
Describe why the primary objective of maximizing shareholder value may actually be the most beneficial for society in the long run.
Consider a market structure where there is a monopoly in input market (upstream monopolist) and also there is a monopoly in product market (downstream monopoly). If each firm maximizes its profit then there is double mark up. Show that if these two f..
Discuss the issue of health care in the context of the following microeconomic concepts: ?Marginal analysis ?Trade-offs ?Opportunity costs ?Normative versus positive economics
What are some of the risk factors associated with sexual activity during adolescence and potential consequences? What are some of the community-based programs that provide services to address premarital sex in adolescence? In your opinion, are these ..
Jane lives in a dormitory that offers soft drinks and chips for sale in vending machines. Her marginal utility for soft drinks (Good X) is equal to 3Yand her marginal utility of chips (Good Y) is equal to 3X. MUx = 3Y MUY = 3X Soft drinks are priced ..
If the taxes are set so that each resident shares the cost evenly (a=b=c), how so many paths will get built.
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