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David's gasoline station offers 4 cents off per gallon if the customer pays in cash and does not use a credit card. Past evidence indicates that 40% of all customers pay in cash. During a one-hour period, 15 customers buy gasoline at this station. What is the probability that at least 10 pay in cash?
Assume that a industry produces 200000 units a year and sells m all for $10 each. Furthermore, assume that marginal external damage of this product is $6 per unit. How many more units of this product will free market produce than is socially.
Allied Electrons must purchase a new automatic soldering machine to meet increased demand for its electronic goods.
Two methods of carrying away surface runoff water from a new subdivision are being evaluated. Method 1 – dig a ditch. This would cost $60,000 and would require $25,000 of re-digging and shaping every 5 years after. Method 2 – Lay concrete pipe.
Explain how would you extend the above narrative to businesses, society as a whole or nations.
A famous American has been visiting the same tropical island for 15 years for vacations. When she goes she pays for everything by writing checks drawn on her U.S. bank. The currencies the natives use are not U.S. dollars; they use a currency called a..
Suppose that Pepsi and Coke are competing in a horizontally differentiated Bertrand market and setting prices. The demand curves are as follows:
Why can the covariance of a pair of random variables be negative when the variance of random variables is always non-negative?
The private marginal benefit for commodity X is given by 50-5 X , where X is the number of units consumed. The private marginal cost of producing X is constant at $10. For each unit of X produced, an external benefit of $5 is imposed on membe..
Calculate the chi square statistic for the test if the standard deviation of the selected batteries is 6 minutes.
Explain what demand deposits are and why they should be included in the stock of money?
If the tax elasticity of supply is 0.55 by how much will the quantity of labor supplied decrease when the marginal tax rate increases from 35 to 45 percent?
Explain why savings is unlikely to equal intended investment in the Keynesian model. Equilibrium GDP is $5000 while full employment is $6000. What kind of gap is this? What would the Keynesians say the government should do?
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