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Show using appropriate graphs the optimal pricing of public transportation. In particular, show what the optimal pricing would be under a) no traffic congestion b) some traffic congestion
Determine the equilibrium price and quantity. Outline the significant factors that could cause changes in supply and demand for the product
Metro Airlines runs 10 flights per day at a total cost of $50,000, which includes $30,000 in fixed costs for airport fees, airplanes, and the reservation system and $20,000 invariable costs for flight crews, fuel, baggage handlers, and food service. ..
Assume that a 1- year discount bond (bond A) with a face value of $1,000 is currently trading at PV = $938.97, and another 2-year discount bond (bond B) with identical risk features and face value is currently trading at $834.01. Please calculate the..
Define the Law of Supply? Keeping in view the Law of Supply, how the following factors will shift the supply curve? (Each answer must be supported by a neat diagram):
The filling variance for boxes of cereal is designed to be .02 or less. A sample of 41 boxes of cereal shows a sample standard deviation of .16 ounces. Use ? = .05 to determine whether the variance in the cereal box fillings is exceeding the design s..
Explain by how much would it have to increase government purchase to achieve this goal.
Suppose that a Starbuck’s venti latte currently sells for US$4.00 in the United States and C$5.00 in Canada. Make up a value for the exchange rate between the U.S. dollar and the Canadian dollar (expressed as Canadian dollars per U.S. dollar) that le..
According to new growth theory, Knowledge capital is nonrival in the sense that. Which of the following government provisions would help increase the accumulation of knowledge capital? By offering more generous unemployment insurance programs, Europe..
Suppose we now care about the long run decisions of a firm that has a production function of the form q = 4L^1/2 + K. Assume that, at the beginning when w0 = 1 and r = 0.5, the firm chose to produce q0 = 20 units of output. Then, the wage increased t..
A small company sells medical supplies to hospitals. Management wants to assess the efficacy of the company’s advertising, and an analyst has produced the following three regressions: Why is the coefficient on advertising different in the first two r..
Imagine you are a manager of a chemical company. An accident has occurred in which chemicals leaked into the ground water nearby, the community is unaware. Assess the costs involved in cleaning up the water immediately (confessing) versus hiding the ..
To differentiate its product a monopolistic competitive firm will engage in all of the following advertising practices EXCEPT
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