The demand by senior citizens for showings at a local movie house has a constant price elasticity equal to - 4. The demand curve for all other patrons has a constant price elasticity equal to - 2. If the marginal cost per patron is $1 per showing, how much should the theatre charge members of each group?
1. Resources are A. scarce for households but plentiful for economies. B. plentiful for households but scarce for economies. C. scarce for households and scarce for economies. D. plentiful for households and plentiful for economies. 25. Ben bakes bread and Shawna knits sweaters. Ben likes to eat bread and wear swea
1. For the following cost function, find AC TC = 20,000 + 10 Q2. For the following cost function, find AVCTC = 20,000 + 10 Q
1. For the following cost function, find AC TC = 20,000 + 10 Q 2. For the following cost function, find AVC TC = 20,000 + 10 Q
Suppose industry abatement costs rise from $850 million in 2004 to $1,000 million in 2005 in nominal terms and that the CPI is 100 in 2004 and 106 in 2005. a. Evaluate the change in costs over the period in real terms, first in 2004 dollars and them in 2005 dollars. b. Are your answers the same? Explain why or why not.
Suppose a typical consumer's inverse demand function for bottled water at a resort area where one firm owns all the rights to a local spring is given by P = 15 - 3Q. The marginal cost for gathering and bottling the water is $3/gal. Find the optimal number of bottles to package together for sale and the profit-maximizing pric
Graphically solve the following problems Maximize Profit Z= $4X1+$6X2 Subject to 1X1+2X2 ≤ 8 6X1+4X2 ≤ 24 a). What is the optimal solution? b) If the first constraint is altered to 1X1+3X2 ≤ 8, does the feasible region or the optimal solution change? See attached file for full problem descri
If the price of capital is $24, the price of labor is $15, and the marginal product of capital is 16, the least costly combination of capital and labor requires that the marginal product of labor be ________.
Which of the following combination of inputs is most closely reflective of decreasing marginal rate of technical substitution (MRTS)? a. oil and natural gas b. sugar and high fructose corn syrup c. computers and clerks d. keyboards and computers Which of the following is the best example of two inputs that would
This problem was changed from calculating aggregate demand to calculating the changes in aggregate expenditures. I thought with aggregate expenditures, knowing the MPC is useless information unless we are going to calculate the new, equilibrium GDP. I am stumped and would appreciate any insight. -Assume that a hypothetical
3. The demand equation for a product is given by P =30 - 0.1Q² a. Write an equation for the point elasticity as a function of quantity. b. At what price is demand unitary elastic?
Retirement of the baby boomers threatens the Social Security system because the number of retirees will be relatively large compared to the number of workers remaining by 2020. What possible actions could offset this effect? Please list sources.
It is well documented that the carbon monoxide (CO) emissions from combustible engines increase in colder climates. This implies that the associated damages are expected to be less severe in summer months than in winter. Nonetheless, air quality control authorities use a standard for CO that is uniform throughout the year with
One of the major problems in applying the Coase Theorem in practice is the existence of high transactions costs. Propose an approach that a third party could use that would reduce these costs sufficiently so that bargaining could proceed. How likely is the solution to be efficient and why?
Please help understand the subtleties of what is and is not included in the government component of the GDP when using the expenditure approach. One of the following is not included in the government spending component: Social Security Payments The wages paid by a local government to the workers in it's welfare system
Suppose that there is a general increase in incomes. Compare the effect of this increase on the demand faced by the following two chains: a. Marriott, a four star hotel chain with properties throughout the world. b. Motel 6, a chain of low priced hotels.
Linear Programming Holiday meal turkey ranch is considering buying two different types of turkey feeds. Each feed contains a varying proportions, some or all of the three nutritional ingredients essential for fatterning turkeys. Brand Y feed costs the ranch $0.02 per pound. Brand Z costs $0.03 per pound. The rancher would like t
See attached file for full problem description.
Based on current dividend yields and expected capital gains, the expected rates of return on portfolios A and B are 11% and 14%, respectively. The beta of A is 0.8, while that of B is 1.5. The T-bill rate is currently 6%, whereas the expected rate of return of the S&P 500 index is 12%. The standard deviation of portfolio A is 10
Last year the Olsen family earned $70,000. This year their income is $77,000. In an economy with an inflation rate of 8%, we can conclude the Olsen's nominal income: a. and real income both increased b. and real income by decreased c. increased, but their real income decreased d. decreased, but their real income increased e
The cash flow data of Palomba Pizza Stores for the year ended December 31, 2001, are as follows: Cash payment of dividends $ 35,000 Purchase of land 14,000 Cash payments for interest 10,000 Cash payments for salaries 45,000 Sale of equipment 38,000 Retirement of common stock 25,000 Purchase of equipment 30,000 C
Select a U.S. multinational company. In terms of currency denomination, discuss how the firm prices its revenues and costs. For MNE's with multiple foreign operations, consider any one of those operations and the contribution it is making to the parent firm's profits. Using this information, what do you think would be the effect
Think about the trade-off between work and leisure during a given day, and from day to day. During a given day, does the opportunity cost of work rise, decline, or remain constant with each additional hour of work? And, if the wage rate remains the same, does the opportunity cost of work vary from day to day, regardless of the d
How should price elasticity be used for pricing this product? Do you recommend the price going higher or lower? What additional information is helpful to price this product? See attached file for full problem description.
You want to calculate the cluster coefficient for your own email contact list. That is, the set of names in your email address book is the relevant social network for your calculation Compose an email that you could send to each of these individuals asking for the data you would need to complete the calculation of the cluster co
You are the most despised of characters - a spammer. SPAM Levels for Profitability. See attached file for full problem description.
A monopolist has demand and cost curves given by: Quantity demand = 10000 - 20P TC = 1000 + 10Q + .05Q^2 a. Find the monopolist's profit-maximizing quantity and price. b. Find the monopolist's profit. I tried to do the problem but kept coming up with a negative number for the monopolist's profit. Are my number's corre
Some real estate economists have argued that anchor stores (such as Macy's and Bloomingdales) in shopping malls create significant externalities for overall sales. Comment on the nature of this externality, and suggest a policy/strategy to allow shopping malls to internalize this strategy.
Generally, what are the strengths and weaknesses of using a standard deviational ellipse for comparing concentrations and overlaps of businesses?
Company A is selling bonds paying $105 annually that will mature 10 years from today. The bond is currently selling for $970, the face value of the bond is $1000. Calculate: -coupon rate -current yield -yield to maturity
Company A is considering the purchase of a new machine that would lower cash outflow. The cost of the machine is 30,000. The annual reduction in cash flows is: Year Amount 1 5000 2 8000 3 12000 4 14000 If the cost of capital is 10%, calculate the following: