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Mr Patel runs a motel in Tampa, FL. The market is highly competitive since there are many hotels in the surrounding areas and the average room rent per night is $35. There are 30 rooms are Mr Patels motel and each room can be rented for 30 nights a month. That is each month Mr Patel can rent 900 nights total. Mr Patels monthly cost curve is:
TC = $10,000 + $10 x Q
What is Mr Patels Marginal cost? What is Mr Patels profit maximizing quantity? What is his maximum profit?
ESPN currently pays the NFL $1.1 billion per year for eight years for the right to exclusively televised Monday night football. What is the net present value of this investment if the parent Disney Company has an opportunity interest rate equal to it..
Tax Freedom Day answers the basic question, Illustrate what cost is the nation paying for government.
If a competing cinema reduced its prices by 10%, how would you expect this action to affect demand at Crown? How should the cinema determine an optimal ticket price?
Opponents of the minimum wage point out that the minimum wage:
Paula has set aside $60 monthly budget to attend plays and watch movies. She likes plays exactly three time as much as she likes movies. Draw her indifference curves. If the price of movies decreases to 4 dollars how many movies will she see?
All workers face tradeoffs. Self-selection allows workers to exploit these tradeoffs when choosing jobs, thus maximizing utility. One trade off is between pay and safety. Some workers are willing to take a hazardous job if it is accompanied by higher..
BP Oil is in the process of replacing sections od its Prudhoe Bay, Alaska oil transit pipeline. Illustrate what required return does the project become financially unacceptable.
Peggy-sue's cookies are the best in the world, or so I hear. She has been offered a job by Cookie Monster.
If it cost Wardco $10million to treat the water and the value of mined products to customers is $8million, requiring water treatment would kill the project. Should Wardco be required to treat the water in this case?
Suppose the average Social Security benefits in the nation are $14,000 per year. The number of Social Security pension recipients is currently 50 million. There are 150 million workers in the workforce this year and the average taxable wage per worke..
For each values for the MPC, determine the size of the simple spending multiplier and the total change in real GDP demanded following a $10 billion decrease.
Elucidate proponets of free market systems argue that free enterprise leads to more efficient production and better responses to changing consumers preferences.
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