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The ABC movie theater has 300 seats. In a typical month, 25 percent of the seats are sold. The price elasticity is estimated to be -0.9. The price of a ticket is $8.00. The manager wants to increase the attendance to 30 percent. What price should he charge per ticket? (Note: Use the arc elasticity formula.) Is this a good strategy? What would be your recommendation?
Was innovation accelerated or suppressed by the government monopoly granted to Fulton? Why? How did innovation change after the monopoly was broken? Give one or more examples of modern companies that are producing value in restricted markets, like Va..
Income taxes Hubert, a resident of Econoland, currently works 20 hours a week and earns an annual income of $50,000. The following table shows income tax rates in Econoland. Annual Income Tax Rate Up to $50,000 10% From $50,000 to $75,000 20% Over $7..
Suppose that a chicken farm uses a nearby stream to dispose of the wastes released by its chickens. These wastes flow downstream into a lake that has become thick with algae and polluted due to the minerals in the waste matter. Which of the following..
What is the efficient level of for this firm? How much profit would Elm Industries earn at this level of production? How much would total damages be? What would be the net benefits?
q1. wanda owns a fish shop. she employs students to sort and pack the fish. students can pack the following amounts of
Suppose that each worker in the Home country can produce three cars or two TVs. Assume that Home has four workers. Graph the production possibilities frontier for the Home country. What is the no-trade relative price of cars at Home?
Consider an income guarantee program with an income guarantee of $5,000 and a benefit reduction rate of 40%. A person can work up to 2,000 hours per year at $10 per hour. Draw the person’s budget constraint with the income guarantee. Be sure to place..
Consider the timing: The incumbent chooses whether to invest; then the entrant observes the incumbents investment decision; then the firms compete in prices. Show that in subgame perfect equilibrium (SPNE) the incumbent does not invest.
q1. for each of the determinants of demand in equation 2.1 classify an example exemplify the effect on the demand for
If both players play optimally, who will win the game? Does this game have a first-mover advantage? Explain your reasoning.
What is the relationship of marginal productivity and wage rates? How does value of productivity determine wage rates. Why do engineers earn more than a person working in a fast food restaurant?
Utilizing the standard IS/LM model, elucidate how the scope of monetary policy to change real economic activity in the short run depends on the private sector reaction to interest rate changes.
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