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The City of Arlington Texas spent approximately $325 million on the new Dallas Cowboys stadium which opened in 2009. The city financed the expenditure with special-purpose bonds anticipated to cost approximately $21 million per year to service. Assume further that the city will spend $0.5m per year in ongoing infrastructure and maintenance and $0.5m per year in ongoing public good provision. Assume the following: there are 100,000 households in Arlington with an average willingness-to-pay for the Cowboys of $10 per year, the Cowboys share $250,000 per year in naming rights revenue, pay $1 million in rent, the stadium is financed with a half penny sales tax, the level of spending in Arlington before the new tax in place was $3.12 billion, and the city’s portion of the local sales tax before the new stadium tax was 1.5%. Assume a multiplier of 1.25. What level of new spending must be generated by the Dallas Cowboys and other events in the stadium for the city to service the debt and public services incurred for the stadium? Does this expenditure target seem likely? Explain.
A hotel owner, having heard that new hotels plan to open in his area, saysl "We have too many hotels in this town already. Statistics show that vacancy rates average 20 percent on any given night." Assuming this is correct, evaluate his negative a..
Suppose an industry consists of 2 firms that compete by choosing quantities simultaneously in each period t = 1, 2, 3,...... (in other words, the two firms play infinitely repeated Cournot game). Inverse demand in the industry is given by the linear ..
The bank is paying 10.13% compounded annually. The inflation is expected to be 11.77% per year. What is the market interest rate?
What do you think are the three most important purposes of the AICPA Code of Professional Conduct?
A sample of human resource executives was asked how their company planned to change their work force over the next 12 months. a categorical response variable showed 3 options: add employees, no change, lay off employees. Another categorical variable ..
Describe economics and Describe the economic perspective, including definitions of scarcity, opportunity cost, purposeful behavior.
question 1 for the following scatter plot what would be your best estimate of the correlation coefficient?nbspquestion
Illustrate what would be the effect of poor weather on the consumer surplus, producer surplus, deadweight loss.
The state of Minnesota is considering building a highway through undeveloped wilderness. The construction will take 1 year and the construction costs are estimated at $10 million. The annual routine maintenance costs are expected to be $1 million per..
It is believed that education provides a positive externality (i.e. an external benefit) to society that would not be exhibited in a free market for education.
Name some of the ways firms attempt to control their costs. Explain Name some of the ways firms attempt to control their costs. Explain how does your firm control costs.
Benson manufacturing company is considering ordering electronic components from three different suppliers. The supplier may differ in terms of quality in that the percentage of defective components may differ among the suppliers.
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