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Suppose that there are two grades of professional football players. There are a restricted number of "stars," whom the fans most want to watch, and an unrestricted number of "non-stars." There are only some stars to fully staff every team, but there are enough for a few to be on each team if an owner decided to hire them.
a. Assume that football teams keep all the "gate" and TV revenues they generate and that players are free to choose their teams at the end of every season. Does a star earn more than non-stars? How are the salaries of each group determined?
b. Continue to assume that players are free to choose their teams, but assume now that teams agree to share all their gate and TV revenues equally (they put them into a "pool" and divide it equally among the team owners). What happens now to salaries of stars and non-stars?
Illustrate what would you expect to happen to the company's total revenue if the shoe prices were increased. What if the company lowers the price.
Illustrate what must the saving rate be to achieve the Golden Rule level of capital.
Identify also Talk about an industry or a marketplace segment companies were the "wrong" size for the long term.
number of items dry cleaned and p is the price of each item in dollars. What price will he sell services at?
The company depreciates its assets on a straight-line basis and has a marginal tax rate of 40 percent. The firm's cost of capital is 14 percent. Based on the internal rate of return criterion, should this machine be purchased?
Suppose a nation picks 1000 young adults at random to serve in the army. Illustrate what information do you need to determine the cost of using these people in the Army.
What happens to the aggregate quantity demanded in nominal terms over this interval? Using the formula for price elasticity of demand what is the elasticity of aggregate demand over this interval?
As part of their chores on Saturday mornings, they have to clean the bathrooms also wash the floors of the house while their parents go grocery shopping.
1. describe the schumpeterian notion of creative destruction. how does it compare to kirzners view of the
Show why this equilibrium point is unique, i.e. if we are not at point E, illustrate what would happen in this economy.
How much income gets you into the top quartile or quintile. Discuss the issues of regressive, proportional, and progressive taxation.
Write down on a paper analyzing dissimilar approaches that might be used by Keynesian theorists.
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