Reference no: EM131172306
1. Richard runs a pizza delivery restaurant. List the three key economic questions, and give relative examples as they apply to Richard’s restaurant. Explain. How could thinking at the margin help Richard increase his revenue?
2. Joe Schmuckatelli owns and operates a widget manufacturing plant that sells its products in local home improvement stores. The plant occupies 40 acres on the outskirts of Omaha and employs 52 workers. Give examples of each of the five factors of production in Joe's business.
3. Metro Airlines runs 10 flights per day at a total cost of $50,000, which includes $30,000 in fixed costs for airport fees, airplanes, and the reservation system and $20,000 in variable costs for flight crews, fuel, baggage handlers, and food service. If an 11th flight would have 25 passengers, each paying $100, would it make economic sense to offer the flight? If a 12th flight only drew 15 passengers, would it make sense to offer it? Discuss and show your math.
4. Critical Thinking: Although still not yet fully implemented Congress passed a bill creating national health care system, called the Affordable Care Act, also called Obama-care. In what ways do the principles of economics relate to this decision? Describe how each relates and what issues we must consider.
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What level of recycling is optimal
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What type of fiscial policy should be enacted
: If unemployment is high and spending is sluggish, what type of fiscial policy should be enacted? How would this be enacted via taxes? Via government spending? What is the intended effect of this policy on aggregate demand?
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We had three phased increase in minimum wage
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Demand elasticity and pricing strategies
: Read the case study "Demand Elasticity and Procter & Gamble's Pricing Strategies" on page 47 of Economics for Managers. 3.Based on these facts, answer the following questions: a. Should Procter & Gamble use reward or loyalty programs to influence dem..
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Thinking at the margin help richard increase his revenue
: Richard runs a pizza delivery restaurant. List the three key economic questions, and give relative examples as they apply to Richard’s restaurant. Explain. How could thinking at the margin help Richard increase his revenue?
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Pricing trial in order to estimate the elasticity of demand
: Bellsouth Mobility (BM) ran a pricing trial in order to estimate the elasticity of demand for its services. The manager selected 4 states that were representative of its entire service area and increased prices by 5% to subscribers in those areas. Di..
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Calculate the cournot equilibrium outputs
: Jack and Mike harvest timber and sell it to local sawmills. Harvesting timber requires a special government permit. Jack and Mike have the only two permits and are therefore the only two producers of timber in this market. Harvested timber is a homog..
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What is the optimal linear price
: You are the manager of the Santa Cruz Boardwalk Amusement Park, in Santa Cruz, CA, which offers a number of thrill rides to tourists. You consider your self a monopolist. What is the optimal “linear” (i.e. standard) price that you could charge? What ..
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Production firm operating in perfectly competitive market
: You are the manager of a small Canadian steel production firm operating in a perfectly competitive market. Two events have caught your attention recently:
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