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The income elasticity of demand for clothing is estimated at +0.5. What would you expect to happen to clothing revenues when incomes are rising When incomes are falling Is the effect stronger or weaker than the movie industry results
part-1question 1nbsp following the general methodology used by econometricians as explained in the session for week 1
The average revenue schedule of a simple monopolist is: Pmkt = 5000-20Q The total cost schedule of the monopolist is: TC = 50Q2 + 100Q; and marginal cost is: MC = 100Q + 100 a) What is the market-clearing price for the monopolist b) How much will t..
During a recent home stand, suppose the club offered $5 of the $12 regular price of reserved seats, and sales spurted from 3200 to 5200 tickets per game. A. Derive the funcion that describes the price-output relation with price expressed as a funct..
Compute the projected profit for the order quantities suggested by the management team under three scenarios: worst case in which sales equal 10,000 units, most likely case in which sales equal 20,000 units, and best case
Assume an individual is currently using all of his income to consume two goods, X and Y. If the prices of X and Y are $3 and $8, respectively, and the marginal rate of substituion of X for Y is four, is this individual maximizing his net benefits
If the long-run production function is q = O.4KL^0.5, what is the firm's short-run production function if K = 5 units What is the firm's output when L = 16 workers What is the firm's marginal product of labor and average product of labo
A fully equipped facility can be leased at a cost of $35,000 for the year. Additional projected costs are $15,000 for overhead, and $5 per automobile for materials and supplies. Full detail automobile cleaning would be priced at $25.
A plan to build a new tower would involve a building tax that would collect $6,745 each year for all people in a certain city. If the cash flow begins 2 years from now, what is the present worth of the building plan over a 10 year planning period ..
Below is a list of domestic output and national income figures for a certain year. All figures are in billions. The questions that follow ask you to determine the major national income measures by both the expenditures and the income approaches.
Suppose that under a new law, all businesses must pay a tax equalto 3% of their sales revenue. Assume that this tax is not passed onto consumers. Instead, consumers pay the same prices after the taxis imposed as they did before.
marginal airlines runs 10 flights per day at a total cost of $50,000, including $35,000 in fixed costs for airport fees and the reservation system and $15,000 for flight crews and food services. If an 11th flight would have 20 passengers, each pay..
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