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video world operates a retail store that rents movie videos. for each of the last 10 years, Video World has consistently earned profits exceeding P250000 per month in rent for its building, but it uses only 50 percent of the square footage rented for video rental purposes. The other option of the rented space is essentially vacant. Noticing that Video World only occupies a portion of the building, a real estate agent told the owner of Video World that she could add P12000 per month to her firm's profits by renting out the unused portion of the store. While the prospect of adding an additional P12000 to Video World's bottom line was enticing, the owner was also contemplating using the additional space to rent video games. What is the opportunity cost of using the unused portion of the building for video game rentals?
Suppose that the economy is already in recession, and both President and Congress have declared to do something to restore the economy.
What are your thoughts about minimum wage legislation? What kind of a price-control policy is this? Who gains? Who loses? Are there alternatives to this legislation for achieving the same policy objectives?
Which tool do you think is most commonly used If the Fed wanted to decrease the supply of money in the economy, would the Fed buy or sell securities in the open market and what would be the first effect of this policy.
Wages after inflation rise for most Americans by about 3% and for highly skilled workers by 7%. The stock market soars and home prices rise dramatically. If all other things are equal, what is the likely effect on the poverty rate
Compute the price, output, and profit contribution if the product is not certified. Compute the price, output, and profit contribution if the product is certified. Should the firm undergo the certification process?
For this week, we are continuing our discussion on GDP and economic growth. We will realize that most of government spending goes towards welfare such as social security. However, it is a common belief that social security benefits
Give a numerical example to show that a monopolist's marinal revenue can be upward-slping over prt of its range
Compare these nominal interest rates with the current rate of inflation as measured by the most recently announced rate of change in the consumer price indexIf the current rate of inflation were to continue unchanged, what real rate of interest wo..
Describe the behavior of consumption, investment, labor, productivity, wages, the price level and the money supply over the business cycle both in terms of correlation, magnitude and lead vs lag. Give the economic intuition of the results on consu..
Suppose that the government increases taxes and government purchases by equal amounts. What happens to the interest rate and investment in response to this balanced-budget change. Does your answer depend on the marginal propensity to consume.
What is cost of AFC per paper, what is MC per paper and what is minimum amount must charge to break even on costs?
Students will conduct an analysis of a recent article and provide their evaluation and outcome expectations in a written paper of 1500-2500 words that discusses:
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