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Assume Al and Bob are fans of the Chubs. Their willingness to pay for Chubs’ preseason and regular-season games is noted below. Pre-Season: Al = 200 Bob = 300 Regular-Season: Al = 800 Bob = 600 If the Chubs were to sell the pre-season and regular-season games as a ‘bundle’ so that Al and Bob would both purchase the bundle, what maximum P could the Chubs charge (and what would be the extra revenue of selling that bundle to both Al and Bob at that P versus selling pre-season tickets for $250 and regular-season tickets for $700)? a. $700 (+$450) b. $800 (+$650) c. $900 (+$850) d. $1000 (+$1050) e. $950 (+$0
Find the equilibrium price (P), quantity (Q), and revenue in a market characterized by the following equations:
Briefly explain what inflation targeting is and list the five (5) main elements related to it. Then discuss the four (4) advantages and three (3) disadvantages of this type of monetary policy strategy.
Under monopoly, still with the price PW which is again label triangle of consumer surplus and the triangle of producer surplus.
Imagine that there are 1,000 consumers. For each consumer, the willingness to pay for a widget is distributed uniformly over the interval [0,1] depending on the style of the widget. A retailer with a particular study of the good knows this distributi..
Suppose that the Bureau of Labor Statistics issued statistics about the population and labor as the following:
The Honolulu tourism commission currently proposed a 7% tax on hotel rooms to pay for an outdoor amphitheater.
Analysis of Pricing: You manage Mt. Claire Café which sells meals at a price of $8.50 each. The meal includes a hot dish and a beverage of your choice. The average number of meals sold per month is 21,000. The owners of Mt. Claire Café would like to ..
What would happen to the amount of economic investment made today if firms expected the future returns to such investment to be very low.
suppose that the government is debating whether to spend 100 billion today to address climate change. it is estimated
Suppose a household's annual take-home pay in 1951 was $8,320. Elucidate what would be an equivalent home pay in 1982.
Suppose the supply of labor is given by LS = 10w , where LS is the quantity of in millions of persons employed each year, and w is the wage rate in dollars per hour. The demand for labor is given by LD = 80 - 10w. What will be the free-market wage r..
Distinguish between the crowding-out effect also the Ricardo-Barro effect. Elucidate how are the two effects related
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