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A trendy French restaurant is one of the first businesses to open in a small corner of a commercial building still under construction. The restaurant has received rave reviews and has lines of diners waiting for tables most nights.
a.) In the short run (next few months), what measures should the restaurant take to maximize its profit? Explain.
b.) In the long run (next six months and beyond), how can it maximize its profit?
Suppose that inflation is 2 percent, the Federal funds rate is 4 percent, and real GDP is 3.00 percent below potential GDP. According to the Taylor rule, in what direction and by how much should the Fed change the real Federal funds rate?
The firm is considering a movement of the plant to Shenzen, China where labour is cheaper. The same mathematical relationship between inputs and outputs will hold.
Pk(price of one unit of capital)=1 tax rate=.15 Write the tax-adjusted user cost of capital as a function of the real interest rate(r). Also write the desired future capital stock and desired investment as functions of (r).
Illustrate what is the own price elasticity for ATM fees charged to non-customers.
Assume the U.S. economy begins in long-run equilibrium. Concerns about global climate change cause the government to significantly restrict the production of electricity form fossil fuels.
Use the utility function to answer the questions, below: (x1, x2) = exp (√(x 1 ) + √(x 2 )-Derive the Marshallian (ordinary) demand function for good1 and 2, x i *(p,l), i =1,2 . Then derive the indirect utility function (p,l).
Your personalized sweatshirt business requires you to hire specially trained employees, so you are a monopsonist. Remember that you must pay everyone the same wages. There is no discrimination.
Different races now or likely to be in workforce of the future depends on the US populations racial demographic changes.
Determine what would you pay for a share of X Corp stock today if the next dividend will be $3 per share, your required return on equity investments is 15 percent,
The dating service's owner said that the difference in price compensated for inequities in pay scales between men and women. Which of the following statements below is an alternative explanation that an economist would look for.
Explain how is their gain or loss determined. What is the maximum loss to a purchaser of a futures contract.
Suppose that Al, Beth, Carol, David, and Ed receive incomes of $500, $250, $125, $75, and $50, respectively. Create and interpret a Lorenz particular level of total income.
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