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Question: If you rent a car, you can (1) return it with a full gas tank, (2) return it without filling it and pay $3.45/gallon, or (3) accept a fixed price of $35 for gas. The local price is $3.15/gallon for gasoline, and you expect this car to get 28 miles per gallon. The car has a 20-gallon tank. What choice should you make if you expect to drive:
(a) 150 miles?
(b) 350 miles?
(c) 500 miles?
(d) How do your answers change if stopping at the filling station takes 15 minutes and your time is worth $12/hr?
network externalities are often an important aspect of demand for information goods and services. (The benefits to customers of using software, participating in electronic markets, or using instant messaging increase with the number of other users..
Wages offered for a particular type of job are the same across the country. The labor market usually yields a range of wages rather than a unique equilibrium. Wages exhibit frequent and prompt changes in response to changes in market conditions.
Describe a specific tariff, an ad valorem tariff, and compound tariff. What are the advantages and disadvantages of each?
Demand in the widget market is given by QD = 30 – P, and supply is given by Qs = P + 6. The government imposes a tax on suppliers of t on every widget sold. After the tax is imposed, what is the total price per widget paid by widget buyers?
Identify and research an organization that operates like a 20th century organization but has adopted a structure that manifests 21st century characteristics.
Assume that the consumption of schedule for a private open economy is such that consumption C = 50 + 0.8Y. Assume further that planned investment Ig and net exports Xn are independent of the level of real GDP and constant at Ig = 30 and Xn = 10. Reca..
Find the profit-maximizing quantity the monopolist will produce, and what price he will charge. Calculate the dead-weight loss. Interpret this number
Colleen Fernandez, president of Rhino Enterprises, applied for a $175,000 loan from First Federal Bank. The bank requested financial statements.
A customer consumes two normal goods, chocolate and coffee. The price of coffee rises. The income effect, by itself, suggests that the customer will consume
On the fictitious television game show, "Marginal Analysis for Everyone," the host subjects contestants to unusual tests of mental skill.
Consider the following function relating number of units (in 100) of a product sold, N , to the amount (in $1,000) spend on advertising, S. N = -0.08S3 + 3.6S2 - 30S + 80 , 5 ≤ S ≤ 25 - Find the function's point of diminishing ret..
Assume that a firm operates with the production function Q(K.L)=KL1/2 and assume that the price of labor w=$4 and the rental rate for capital r=$2. without doing any calculations, sketch a representative LTC and LAC curve for this production functi..
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