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Consider the following two pairs of goods:
Graduation caps and graduation gowns
Gasoline at an Exxon station and gasoline at a Shell station
Which of the pairs of goods above is likely to be nearly perfect substitutes and which likely to be nearly perfect complements? Explain.
A new machine is to be purchased for $150,000. The company believes it will generate $60,000 annually in revenue due to the purchase of this machine. The company will have to train an operator to run this machine
The capital investment cost for a switchgrass-fueled ethanol plant with a capacity of 250,000 gallons per year if $1.4 million. The cost-capcaity factor for this particular plant technology is 0.59 for capacities ranging from 200,000 gallons per y..
After Hurricane Katrina, about 250,000 New Orleans residents relocated to Baton Rouge, Lousiana, and as a result, housing prices in Baton Rouge rose from an average of $130,000 for a single family home to $156,000 six months later
"The growth of consumer information organizations, legal requirements, and warranty requirements has caused significant increases in the cost of customer satisfaction. " Comment on this quote.
In the linear breakeven model, the difference between selling price per unit and variable cost per unit is referred to as:
Jeff holds $50,000 wealth which has a utility of 7.07 utils (assuming utility is the square root of wealth in thousand dollars). He considers investing this in a gamble which has a 0.6 probability of increasing his total wealth to $100,000 and 0.4..
The markets for labor and office space are tight in your area. To acquire the lease and hire workers, you signed contracts requiring you to give 12 months advance notice before abandoning your lease or laying off workers
On January 1, 1994 Popoff purchased a bond with a face value of $10,000 for $9,500. The bond was to pay 8 percent per year payable on December 31 of each year and be purchased back at the end of the 5th year for face value.
Suppose there are 1,000 small farms in this industry. What will be the output per farm How much revenue will each farm earn If in fact the revenues are sufficiently high to yield handsome profits, how might competition change the happy situation
Ethanol can be produced from either sugar or corn. A gallon of ethanol cost 90¢ to produce from Brazilian sugarcane and $1 to produce from U.S.corn. The U.S. Department of Agriculture expects 20 percent of the corn harvest to be used to produce et..
Assume we observe the following: Qt = 5; pc = 2; pt = 2. If the price of textbooks doubles, by how much does the income have to increase to keep the textbook consumption constant What happens to chocolate consumption Explain.
Shaw, Barry, Issa and Catley (2013) state society attitudes such as the tendency to view the natural world as ‘free and unlimited good' has led to or increased our environmental problems.
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