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Suppose an increase in the minimum wage has raised your franchise’s labor costs. How do you respond to the higher labor costs? How will the higher labor costs affect your short-run cost curve, long-run average product curve, and average cost curve?
The salvage value at the end of five years is 0. The potential revenue in any given year is independent of any other year. Determine the mean and standard deviation of the present worth, using an interest rate of 12%.
The revenue for a new product that will stay in market for five years is projected at $45,000 in year 1, and the revenue is expected to reduce by $5,000 per year. What is the present value of the projected revenue stream if the interest rate is 8% pe..
The recent drop in the price of gasoline and oil has had several effects on the US economy. What pricing model we have considered best represents the market for oil? Defend your answer. Use your model to explain how a moratorium on fracking in the US..
A machine that has been used for one year has a salvage value of $10,000 now , which will drop by $2000 per year. The maintenance costs for the next 4 years are $1250, $1450, $1750 and $2250. Determine the marginal cost to extend service for each of ..
Identify and discuss at least two economic phenomena for which the linear-in-parameters/linear-in-variables regression model may not be appropriate (besides any mentioned in the text).
Over the next three years, a firm is expected to earn an economic profit of $900,000 in the first year, $800,000 in the second year, and $700,000 in the third year. After the end of the third year, the firm goes out of business. If the risk-adjusted ..
Consumer A values good 1 at $4,500 and good 2 at $1,500. Consumer B values good 1 at $5,000 and good 2 at $1,000. Costs are zero. Suppose the monopolist only sold the goods separately. What prices will the monopolist charge for good 2 to maximize rev..
how many standard errors it is away from zero. If it is not very far from zero n we might ignore it; if it is far away from zero n we might consider it important. But how far is ‘far'.
A local video rental monopolist faces the weekly demand function D(P)= 1000-100P. The marginal cost of a rental is $4. Suppose the town government places a $1 tax on all video rentals. What effect will the tax have on the price the monopolist charges..
Describe how each of these activities affects government, households, and businesses. Describe the flow of resources from one entity to another for each activity.
To what extent in life can people make choices to suit us and our own good? Or does the government and big business control us, de facto, or not, (and to what extent)?
Draw a simple circular flow diagram showing the flow of dollars, goods & services between households & firms. Explain why the dollar flow out of households and into businesses must be equal. Is the same true in the expanded circular flow? Explain. Su..
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