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Recently, a bank was trying to decide what fee to charge for "expedited payments"-payments that the bank would transmit at a faster speed to enable customers to avoid late fees on cable TV bills, electric bills, and the like. To try to determine what fee customers were willing to pay for expedited payments, the bank conducted a survey. It was able to determine that many of the people surveyed already paid fees for expedited payment services that exceeded the maximum fees that they said they were willing to pay. Analyze how does the bank's finding relates to economists' traditional focus on what people do, rather than what they say they will do.
An auto dealership estimates that its demand curve has an elasticity of 2.78. If it wishes to increase sales by 12%, by how much should it decrease price What will happen to revenue (rise or fall) If instead it raises price by 20%, what is the per..
your firm designs training materials for computer training classes and you have just received a request to bid on a
A construction company is considering procuring one of two types of heavy construction equipment (A and B). Each type of equipment is expected to have a 5-year useful life with zero salvage value. Equipment A can be purchased at a cost of $30,000,..
You expect to receive a payment of $104 one year from one. Your discount rate is 4 percent. What is the present value of the payment to be received Suppose that the discount rate is 5 percent what is the present value of the payment to be received
Then plot the graph of the function and determine if it displays increasing, constant or decreasing marginal utility.
An alternative has a discounted project cost of $2,195,000 with no salvage value. The estimate was in constant dollars and the discounting used mid-year factors. While the period of analysis is 5 years, the alternative only provides benefits for t..
Assume the economic activity of the economy in a given year consists of the following: Steel producers fabricate Php. 4 billion of farm machinery, which is sold to farmers; Farmers produce 40 million sacks of rice, which is sold for Php. 25 billion ..
The demand for haddock has been estimated as log Q=a+b log P +c log I + d log Pm where Q= quantity of haddock sold in New England P= price per pound of haddock I= a measure of personal income in the New England region Pm= an index of the price of ..
How can you explain the seemingly contradictory result that the workers supply a different number of labor hours? Albert has no substitution effect, and Sid has no income effect when the wage declines to $19.
an office receives 20 faxed orders every two hours.1 what is the probability that it will receive 8 orders in the
the world of videos operates a retail store that rents movie videos. for each of the last 10 years world of videos has
What would you say to someone whose beliefs are unfounded and possibly dangerous to their health?
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