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Jim’s diner is just about to open in Memphis, Tennessee. However, Jim is trying to decide whether he wants to offer Coke or Pepsi soda products. He determines that, to offer either product, he will have to spend $1,600 in sunk costs to purchase and install the appropriate paraphernalia, e.g., a large Coca-Cola or Pepsi sign out front. Ultimately, he chooses to offer Coke products and agrees to pay Coke 5 cents per ounce of Coke sold for the right to use its product. After Jim makes the investments specific to his soda choice, Coke returns and asks for a fixed (one-time) fee in addition to the 5 cents per ounce. What is the most Jim should be willing to pay?
identify the circumstances under which Sarah should choose package A, the circumstances under which she should choose package B
Distinguish between the following views of monetary policy
As real interest rate rises, the quantity of loanable funds supplied _____ and the quantity of loanable funds demanded _____
The AFN equation produces more accurate forecasts than the forecasted financial statement method, especially if fixed assets are lumpy, economies of scale exist, or if excess capacity exists.
Assuming that your opportunity cost funds interest rate is 5% which refrigerator would you buy and why.
A major industrial firm decides to spend $2,000,000 to purchase new machines for a factory. If the marginal propensity to consume is 0.8, the eventual change in GDP will be?
Draw the wage-schooling locus for someone for whom returns to schooling decrease through college but increase after college
Describe the different aspects of the business that you should be looking at from an economics perspective in order to run the company efficiently and explain using economics theory how you would improve the running of your company.
The number of days' sales in inventory. Round to nearest dollar and one decimal place. Illustrate what conclusions can be drawn from these data concerning the inventories.
Just construct the diffusion index from month 2 to 3. In this problem, we have three leading indicators. The diffusion index from month 1 to 2 is 66.7 (=2/3) because two indicators move up and one moves down.
The price elasticity of demand for mopeds, in absolute value, is 0.5, by what percentage will the quantity of mopeds demanded increase if the prices fall by 10%?
Congress cannot dictate how many workers industries hire at mandated wage. Given this fact, Illustrate what are effects of this law. Specifically, illustrate what happens to employment, output and total amount earned by workers.
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