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As a budding entrepreneur, you have purchased a small bagel shop. You have engaged in a market study to categorize your customers' willingness to pay for a meal (coffee+bagel) into 8 equal sized groups: ($5.00, $4.50, $4.00, $3.50, $3.00, $2.50, $2.00, $1.50). All of your costs are fixed except labor and materials, which cost $2.25 per meal sold.
What price should you charge for a meal? Does your answer depend on the total number of consumers?
Movie tickets prices increased by 5% and resulted in a 8% drop in sales. What is the price elasticity of demand? 2. If ticket prices decreased by 5% instead of raising them, what would the changes in attendance would you expect? 3. If a competing cin..
Growth of India and China - China and India are often referred to as two of the fastest growing countries. Compare their recent growth rates to the U.S. growth rate.
The number of repairs manufactured by a computer repair shop depends on the number of employees as follows:
Illustrate what are the production elasticities of demand for labor, capital (trucks) and energy. What type of returns to scale is consistent with the above production function.
Illustrate what does this mean regarding the consumer surplus of the "last person" shown on the demand curve.
As per much of the rest of the world remained characterized by low rates of economic growth.
A firm with costs C(Q) = 1,000 + 60Q + 0.1Q2 is able to price-discriminate-What would happen if it were forced to charge all its customers the same price?
European nation for three consecutive years and comment about possible time changes and eventual differences across countries.
Do you think that monetary policy should cooperate with fiscal policy? If so, why? How could their joint actions affect the level of the debt-to-GDP ratio?
For each level of output, calculate this manufacturer's marginal cost (MC) (For convenience, place the Marginal Cost between 0 and 1 boat on the second row, the Marginal Cost between 1 and 2 boats on the third row, and so on)
Find out one story about the economy that has been in the news lately.
What are the short-term and long-term arguments for and against a near term change in government actions-The rapid pace of growth of government spending in recent years has markedly increased the national debt
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