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Cathy Gwynn, a recently graduated engineer, decided to invest some of her money in a "Quick Shop" grocery store. The store emphasizes quick service, a limited assortment of grocery items, and rather high prices. Cathy wants to study the business to see if the store hours (currently 0600 to 0100) can be changed to make the store more profitable. Cathy assembled the following information.
The cost of the groceries sold averages 70% of sales. The incremental cost to keep the store open, including the clerk's wage and other incremental operating costs, is $20 per hour. To maximize profit, when should the store be opened, and when should it be closed?
What is the most conventional stance regarding the use of absolute value in the definition of Own-price elasticity-Cross-price elasticity
Explain Gary Becker's tastes for discrimination model with regard to employee discrimination and show how a firm that indulges its male employees is not profit.
Luke has $16 to spend on his lunch at his school cafeteria every week. A slice of pizza (P) costs $2 and a submarine sandwich (S) costs $4. Luke likes an average more than extremes. Draw an indifference curve diagram (place pizza on the horizontal ax..
Rossignol Co. manufactures and sells skis and snowboards in France, Switzerland and Italy, and also maintains a corporate account in Frankfurt, Germany.
Compute the weighted average and which project should be accepted?
If the? risk-free interest rate is 11 % per? year, what is the price of a? one-year European call option on Dynamic with a strike price of $ 42?
Firm C produces 1,000 pounds of cotton at a cost of 50 cents per pound. They sell all of the cotton to Firm S for 75 cents per pound. Firm S makes 1,000 t-shirts with the cotton for a total cost of $1.50 per t-shirt. They sell all of the shirts to Fi..
Suppose that the U.S. dollars-Mexican pesos exchange rate is fixed by the U.S. and Mexican governments. Assume also that labor is mobile between the United States and Mexico due to low transportation costs. Which of the following situations is likely..
Draw a correctly labeled loanable funds graph that shows what happens to real interest rates for each of the following situations: (You will have 3 graphs.)
James works for a delivery company in College Station where he consumes bundles of two commodities x and y. Prices in College Station are px=1 and py=5. James’s utility function is U(x,y)=x1/3y2/3 and his income in College Station is $2500. What happ..
Suppose an economy that is initially at full employment faces a substantial increase in the factor cost of production. Discuss (with the aid of aggregate output market and money market diagrams) the short-run effect on output, unemployment, general p..
Some of the largest import tariffs, the tax on imported goods, are on shoes. Strangely, the cheaper the shoes, the higher the tariff. The highest US tariff, 67%, is on a pair of $3 canvas sneakers, while the tariff on $12 sneakers is 37%, and that on..
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