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The Einstein Bagel Corp. offers a frequent buyer program whereby a consumer receives a stamp each time she purchases one dozen bagels for $6. After a consumer accrues 10 stamps , she receives one dozen bagels free. This offer is an unlimited offer, valid throughout the year. The manager knows her products are normal goods. Given this information, construct the budget set for a consumer who has $200 to spend on bagels and other goods throughout the year. Does Einstein's frequent buyer program have the same effect on the consumption of its bagels that would occur if it simply lowered the price of one dozen bagels by 3 percent? Explain
Give an example of an event or incident that has taken place in the U.S. economy which has a major economic impact--be specific, e.g., 9/11 attack,
Explain how to measure the price elasticity of demand and supply and the cross elasticity income elasticity of demand? Explain how you would calculate the price elasticity of demand for gasoline.
You Sell Short 100 shares of USG which is currently selling for $55/share, and you pay a fee of $8/share. One year from now USG is selling for $35/share and you decide to Buy to Cover your Short position in USG. How much money did you make or lose?
Swim coach Rob teaches athletes how to swim freestyle while keeping their hips raised. Let q represent the number of swimmers that learn the technique, and let h represent the number of hours of individual training Rob provides in which the swimmers ..
Consider a small country that exports steel. Assume that a "pro-trade" government deicdes to subsidize the export of steel by paying
Explain in words why an employer would never want to stop increasing the quantity of labor employed when the marginal product is above the average product of labor.
Why might regulatory agencies utilize labor more intensively than private firms? What will happen to the regulatory share of employment if the rate of growth of regulatory employment stays five times higher than overall employment growth?
You are the manager of a monopoly. A typical consumer’s inverse demand function for your firm’s product is P=100-20Q, and your cost function is C=20Q. Determine the optimal two-part pricing strategy. How much additional profit do you earn using a two..
Consider two hypothetical countries. In Country A, 20 percent of the labor force is unemployed for half the year and employed for the other half; the remaining 80 percent of the labor force is never unemployed. Discuss which of these countries seems ..
Travelers driving through Gotham City can use a freeway or the Cross Town Toll way to get through the city. The toll way charges $1.00 per car during the morning rush hour (6-9 AM) and the afternoon rush hour (4-7 PM), and the toll is $0.40 per car a..
In calculating the incremental cost of a particular project, how would you treat the possible future costs of a lawsuit that may occur as a result of this project.
People that are in extreme poverty are barely able to survive. With all the advances in technology, medicine and education, these parts of the world are falling farther and farther behind. This is because they cannot afford these things to have the a..
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