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For each city across the U.S., economists construct a price index for a similar basket of goods. In Los Angeles the index is 127.3 and in Dallas the index is 94.8. If you have been offered $137,000 for a job in Los Angeles and $117,000 for a similar job in Dallas, which job affords you the highest purchasing power of the bundle of goods in the price index?
Explain how does the government decide to use one form of remedy rather than the other.
Select one market segment, and describe in one or two paragraphs what features the cell phone might have in order to be attractive to this segment.
Explicidate that a profit-maximizing bundle will typically not exist for a technology that exhibits increasing returns to scale as long as there is some point that yields a positive profit.
Suppose the owner of the trawler can sell al the fish caught for $75 every 100 pounds also can hire a man crew members as desired by paying them $150 every week.
A recent study indicates to the long-run average cost curve for cellular telecom companies are basically flat. Illustrate what do you expect to happen to industry output.
The Road Runner Club contributes money to Senator Sly's reelection campaign fund, and Senator Sly helps pass legislation to add more jogging paths across the state
Analyze the characteristics which make any transaction possible and justify the importance of each of the characteristics.
Illustrate what is the average value of a loyal customer (VLC) in a target market segment if the average purchase price is $50 per visit, the frequency of repurchase is 12 times per year.
Assume there is a 50% chance of the savings account losing half your money. Elucidate how much does the person save now?
What are the differences among productive and allocative efficiency. What conditions must be present for productive and allocative efficiency to be achieved in the 'real' world.
What is the marginal rate of substitution (MRS) and why does it diminish as the consumer substitute's one product for another. Use examples to illustrate.
Find out the optimal prices, the number of tickets sold in each area and the seller's profit given that the seller wants to serve all consumers.
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