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The Varsity, located in downtown Atlanta, is the world’s largest drive-in restaurant. Located near the Georgia Tech campus, the drive-in attracts two distinct types of customers: college students and visitors to Atlanta. The owners are considering offering a student discount of $1 off their combo meal, which is regularly priced at $9. There are 5,000 students interested in purchasing a combo meal, with a maximum willingness to pay of $8. There are 5,000 visiting customers interested in purchasing the combo meal, with a maximum willingness to pay of $9. Assume that each customer, at most, will purchase a single meal and the marginal cost is $5. What is the amount of total consumer surplus if the Varsity offers the combo meal at the single price of $9 per meal?
q.consider the following cobb-douglas production function for the bus transportation system in a particular cityq
q1. gerry receives a raise from 10 per hour to 12.50 per hour. after the raise gerry increase the number of channels in
Describe the relation between marginal and average costs. Describe the relation between marginal and average fixed costs. Describe the relation between marginal and average variable costs.
How macroeconomic equilibrium does an economy achieve. Elucidate what affect does a high level of inflation have on macroeconomic equilibrium.
Gator Fabrics Inc. currently has zero debt (i.e., wd = 0). It is a zero growth company, and additional firm data are shown below. Now the company is considering using some debt, moving to the new capital structure indicated below. If this plan were c..
You need $23,956 at the end of nine years, and your only investment outlet is a 7 percent long-term certificate of deposit (compounded annually). With the certificate of deposit, you make an initial investment at the beginning of the first year. What..
Maritime Insurance Company offers insurance policies for recreational boats.
You and a friend have each spent $8 on a non refundable movie ticket. Ten minutes into the movie, you both decide that the movie is horrible. Your friend says that you should stay and watch the rest of the movie because you “should get your money's w..
Draw a diagram that describes the circular flow model of the economy. Now modify it to include the role of the environment in sustaining economic production.
Venture capitalists provide funds to finance new companies (start-ups), usually in return for a share of the firm’s initial profits (if any). Of course, venture capitalists look to back experienced entrepreneurs with strong products (or at least prod..
Determine the quantity demanded, the quantity supplied, and the magnitude
Most people spend some of the time in the majority and some of the time in the minority, but overall they consider themselves to be one or the other. Determine whether or not you are going to consider yourself a minority or majority for this question..
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