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Suppose that a stadium can hold 60,000 people instead of 30,000. If "W" seats are allocated to Wiffle supporters, each can be sold for 20-W/2000. And if "M" seats are allocated to Masher supporters, each can be sold for 24-M/3000. What division of seats maximizes gate receipts for the larger stadium?
A mechanical engineer must recommend a new heating system to a commercial building owner. The owner intends to sell the building in 15 years. Determine the equivalent uniform annual cost (EUAC) of costs for the option the engineer should recommend at..
Suppose that Rocky’s Box Corporation is one small firm in the cardboard box industry. Rocky’s boxes are identical to those made by other firms. Assume that his corporation has short run marginal and average cost curves that have the typical shape. Su..
Easy Lawn Care Incorporated has a beta (a measure of common stock volatility) of 1.32, what is its estimated cost of equity capital based on the CAPM when the risk-free interest rate is 2%?
Under the EU merger regulations, preapproval is not needed under which of the following conditions?
The marginal revenue generated for the monopolist by the 13in unit of its product is $6. What is the market-clearing price for the monopolist's product when 13 units are supplied to the market?
Suppose u(c, c') = ln c+β ln c' , there exists N consumers and each consumer lives for 2 periods. In each period they receive an endowment y, y' and are taxed t, t'. Derive the lifetime budget constraint for both the consumer and government. Define e..
A seasonal bus tour firm has 5 buses with a capacity of 60 people each. Each customer pays $25 for a 1-day tour. The firm has an expense of $5/customer and a fixed annual cost of $360,000. If occupancy on the buses average 80% each day, how many days..
A monopoly firm faces a demand curve given by P = 80 – Q and has a cost curve given by TC = 0.6Q^2. Specify and demonstrate its optimal output, price, and profits. Now suppose a specific tax of $16 per unit produced is imposed upon this firm; specify..
Illustrate what will happen to equilibrium price As a local cable company offers cheaper pay- per-view films, local movie theaters have more unfilled seats.
The vast majority of consumers have a relatively inflexible leisure budget. The net effect on spending in the metropolitan area then is zero, or very closes to zero. Read above sentences and explain how a “substitution effect” is relevant for evaluat..
In the following game, determine the maximum amount you would be willing to pay for the privilege of moving (a) first, (b) second, or (c) third: There are three players, you and two rivals. The player announcing the largest integer gets a payoff of $..
Suppose that demand for good increases and, at the same time, supply of the good decreases. What would happen in the market for the good?
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