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Best friends Scott Baio and Willie Aames decide to open up a movie poster shop in downtown Los Angeles. The following relationships describe the supply and demand for movie posters: Qd = 65,000 - 10,000P Qs = -35,000 + 15,000P Where Q is the quantity and P is the price of a movie poster in dollars.
(a) Complete the following table: Price Qs Qd Qs - Qd Surplus/Shortage $6.00 $5.50 $4.50 $4.00 $3.50 $3.00 $2.50
(b) What is the equilibrium price?
Explain how, with use of an example, a right to an injunction increases the bargaining power of a property rights owner.
Analyse the effects of the following events in the loanable fund market diagram where we have (real) interest rate (r) on the vertical axis and the quantity of loanable fund (Q) on the horizontal axis. An increase in government purchases. A decrease ..
Calculate the optimal outputs of each firm at the Nash Cournot equilibrium. Calculate the market price and individual and industry profits.
Honda uses flexible plants in manufacturing of its cars. Discuss where this method of production results in optimum output.
Compare an $80,000 median family income in 1980 to the same income in 1990, 2000, and 2010. What are the differences in the available products? What are the differences in the quality of those products? Considering this, in which of those years would..
Firms A and B both produce an identical product, steel. The marginal cost of producing steel is $501/tonne for A and $490/tonne for B. The fixed production cost
Delta Corporation has a bond issue outstanding with a semi-annual coupon with a nominal rate of 8% and 5 years remaining until maturity. The par value of the bond is $1,000. Determine the current value of the bond if present market conditions justify..
1. Do you think that there will not be enough jobs for humans in the future? What kind of jobs do you think will be available for humans?
Nadine Chelesvig has patented her invention. She is offering a potential manufacturer two contracts for the exclusive right to manufacture and market her product. Plan A calls for an immediate single lump sum payment to her of $210,000. Plan B calls ..
Each child estimates the number of hours per week spent watching TV. At this point, what can be said about the sampling distribution?
Ney Inc. and ARN Parts are the only two producers of bulldozer bucket teeth. The owners of the two firms conspire to charge a monopoly price, with each firm serving half the market. What is each firm's profit? Now suppose that Ney Inc. reneges on th..
Who's economy are we helping when we send job overseas?" There are so many aspects to this question, not the least of which is that many of the jobs we've sent overseas are low-skilled jobs that American don't want to do or are better done (for vario..
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