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The price elasticity of demand for air travel differs radically from first-class (-1.3) to unrestricted coach (-1.4) to restricted discount coach (-1.9). What do these elasticities mean for optimal prices (fares) on a cross-country trip with incremental variable costs (marginal costs) equal to $120
A Malibu boat will cost $32,500 when purchased. Gasoline and maintenance will approximately cost $25/hour, and equipment rental will cost $10/hour. The boat will be used for wakeboard instructing and will generate revenue of $100/hour.
What is required if firms are to have an incentive to maintain their reputations? How might the good reputation of existing firms serve as a barrier to the entry of new firms?
To achieve the socially optimal output, government can use a price-based intervention. Determine the ideal measure for government to use to achieve this goal. Specify both the type of policy and its magnitude.
How has it changed, or has it remained the same?
20 economists were sampled and asked to predict if the national economy would improve during the next twelve months. Eleven of the economists predicted an increase, two economists predicted no change, and seven economists predicted.
What would happen to U.S. productivity? To average U.S. well-being? How could the damage be repaired?
b) Give the mean and standard deviation of the sampling distribution of xbar2. c) Suppose you were to calculate the difference between the sample means (xbar1-xbar2). Find the mean and standard deviation of the sampling distribution of (xbar1-xbar..
Building on (b), suppose that the worker can earn overtime for each hour above 40 hours worked per week. Her base pay remains at $10/hour, but she earns one and one-half time for each hour beyond 40 hours.
Describe and derive an expression for the marginal cost (MC) curve. Why would marginal productivity decline when you hire more workers in the short run after a certain level?
ASM International, an Australian steel company, claims that a savings of 40% of the cost of stainless steel threaded bar can be achieved by replacing machine threads with precision weld depositions. A U.S. manufacturer of rock bolts and grout-in f..
Suppose that velocity is constant and the economy's output of goods and services rises by 5 percent each year. What will happen to nominal GDP and the price level next year if the Fed keeps the money supply constant.
The Australian government administers two programs that affect the market for cigarettes.
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