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Assume that the demand for Internet advertising is declining at the same time that the number of Internet sites accepting advertising is increasing. From this information, a student argues that that the price of Internet ads should fall, but it is not known whether the total quantity of Internet ads will increase or decrease.
Consider a palletizer and a bottling plant that has a first cost of $150,000. It has operating and maintenance costs of $17,500 per year, and an estimated net salvage value of $25,000 at the end of 30 years. Assume an interest rate of 8% per year. Wh..
A high pressure pump at a methane gas (bio fuel) plant in Memphis costs $29000 for installation and has an estimated life of 12 years. By the addition of a specialized piece of auxiliary equipment, The maximum expenditure for the auxiliary equipment ..
A student has a budget of $200 for their meals outside of the home per week. One possibility is purchasing a meal at a restaurant, which we will call x1, and which costs $20, and a second possibility is purchasing a meal at the school cafeteria, x2, ..
The Determinants of Market Interest Rates. An analyst is evaluating securities in a developing nation where the inflation rate is very high. As a result, the analyst has been warned not to ignore the cross product between the real rate and inflation.
The broader measure M2, however, since it encompasses most significant forms of money individuals may hold, resolves the problem. The shifts in asset holdings take place WITHIN the broader measure. Explain why M2 velocity should be more predictable ..
Should the government be rationing radio wave frequencies to ensure an efficient outcome in the broadcasting market in the presence of negative externalities from frequency overlap?
Explain the output effect and the price effect for an oligopoly. How does each influence the oligopolist's production decision?
In the model for airline seat pricing, we studied the case of non-refundable tickets. What if the airline offers refundable business class tickets. You can buy a business class ticket and return it for a full refund if you do not fly.
Compute the t-statistics for each variable and explain what is inferences can be drawn from them.
If, in the short run, a perfectly competitive firm is producing at a point where total cost is greater than total revenue, then the firm should.
John Johnson and Kevin Murphy own and operate a van conversion operation for the major auto companies. Johnson and Murphy has fixed capital and labor expenses of $1.2 million per year, and variable materials expenses average $2,000 per van conversion..
u.s. trucking pays its drivers 40000 per year while american trucking pays its drivers 38000 per year. for both firms
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