Considers working at the mini golf course just as good

Assignment Help Business Economics
Reference no: EM131253366

Jeff runs a mini golf course in Valdosta, Georgia USA. He rents the course and equipment and he himself is the only labor. His monthly earnings after rent is $800, and he considers working at the mini golf course just as good as his alternative of working as a bank teller for $800/month. Jeff learns his uncle has died and left him a $10,000,000 piece of land in New York. Jeff did some research online and found that he could hire a construction company to install and maintain a mini-golf course with equipment for $4000/month. Jeff, who has completed Payap’s Business Statistics and Research course, conducted a market survey and concluded he would earn $16,000/month in revenue by having mini-golf on this land. Jeff knows now that after deducting $4000/mo from the $16,000/mo he would be free and clear of an income of $12,000/month. Assuming cost of living is the same and Jeff enjoys living in both cities the same, he wants to maximize profit, should he switch his operation to New York?

Reference no: EM131253366

Key macroeconomic policy tool

1. Controlling the money supply is a key macroeconomic policy tool. Explain how the Fed controls the money supply and what separates the balance sheet of the Fed from that o

Solve for profit-maximizing level of monopoly output-price

Considers a monopolist with the following demand curve: P=1000-10Q. The monopolist faces MC=AC=100. Solve for the profit-maximizing level of monopoly output, price, and profit

According to the rule for optimal input usage

According to the rule for optimal input usage, a film should hire a person as long as her marginal income product is greater than her marginal cost to the company.

Describe how market power prevents optimal outcomes

Outline some poly options for government intervention. Describe how market power prevents optimal outcomes. Explain how externalities distort market outcomes. Explain how the

Each option over the life of the mortgage

To purchase a house for $80,000, a new couple has $12,000 available for down payment. get a new standard mortgage with 10% APR interest compounded monthly for a 30-year term.

Being monopolistically or perfectly competitive

Classify each of the following industries or organizations as an oligopoly, a monopoly, or being monopolistically or perfectly competitive: a. Athletic shoes b. Restaurants c.

Depreciated in value relative to the yen

Let the exchange rate be defined as the number of dollars per Japanese yen. Assume there is an increase in U.S. interest rates relative to that of Japan. Would this event caus

According to the real business cycle model

Suppose that a severe shock that decreases investment demand hits the United States. Which of the following can we expect to occur according to the real business cycle model?


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd