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You have just been hired as manager of a new golf club. The golf club has market power over its members. The club owner wants you to come up with a two-part pricing strategy to maximize profits for the club. The average golfer’s monthly demand is P = 240 – 8Q. The cost of operating is C(Q) = 10Q, where Q is the number of rounds played in a month. Calculate and explain the two-part pricing strategy you will use to maximize profit.
A small country imports industrial goods and exports agricultural goods. Both industry and agricultural are perfectly competitive. A new minimum wage law raises wages in industry but not in agriculture. However, all workers displaced from industry as..
Government sponsored job training program is no different from any other form of resource transfer since resources have been taken from higher valued uses to a lower valued use.
Supposed a proposed public policy could result in three possible outcomes: If the probability of each outcome is, respectively, 0.85, 0.10, and 0.05, should the policy be pursued or not? Explain.
Suppose that Michelle buys a cappuccino from Paul\'s Cafe and Bakery for $6.25. Michelle was willing to pay up to $8.75 for the cappuccino and Paul\'s Cafe and Bakery was willing to accept $2.25 for the cappuccino. Producer surplus is the difference ..
If I spent all my money ($450,000) on a new house I could buy a house with 4500 square feet. I settle for a 1500 square foot house. (Each square foot costs the same.) The day after I close the deal a nearby nuclear power plant is condemned and the va..
A network carrier serves 39 spoke cities from a single hub. How many city-pairs does it serve? This same airline adds a 40th spoke city to its network using a 100 seat capacity aircraft. On a flight from this 40th spoke to the hub, how many passenger..
problem-solving questionuse the following data for a firms output at various levels of employment l to calculatea its
Label aggregate demand curve as AD and aggregate supply curve as AS. Be sure to label axes appropriately. Identify and describe changes in AS-AD graph above that would result from cost-push inflation.
illustrate what will be the effect of an excess of planned investment over saving in a private closed economy with unemployed resources.
Whenever the amount of output produced is not as great as the amount that the economy is capable of producing, there is a positive GDP ___________ and cyclical unemployment will be the result.
Parker County Community College (PCCC) is trying to determine whether to use no insulation or to use insulation that is either 1 inch thick or 2 inches thick on its steam pipes. The insulation has a life expectancy of 10 years. Determine which insul..
Suppose a wage increase from $11 to $13 an hour increases the number of job applicants from 42 to 56. What is the price elasticity of labor supply?
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