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Disneyland has two possibilities for pricing rides at its theme parks: (1) Set MR = MC for each ride and charge the maximum price consumers will bear. (2) Charge an admission fee to the theme park but allow unlimited rides for free. Using graphs, show which pricing scheme is more profitable for Disneyland.
Three mutually exclusive projects are being considered for a remote river valley: Project R, a recreational facility, has estimated benefits of $10 million and costs of $8 million; Calculate the benefit-cost ratio and net benefits for each possible a..
OPEC successfully raised the world price of oil in the 1970s and early 1980s, primarily due to:
While all members of the Federal Reserve Board of Governors vote at Federal Open Market Committee (FOMC) meetings, only ? of the regional bank presidents are members of the FOMC. Which of the following contributes to making the Federal Reserve an ind..
Describe and explain the meaning of the “Invisible Hand”. Describe what it does, how it works and benefits.
what are the examples to producers take advantage of the internet to implicitly fix the prices
The demand and supply functions for basic cable TV in the local market are given as: Q(D) = 200,000 - 4,000P and Q(S) = 20,000 + 2,000P. Calculate the consumer and producer surplus in the market. If the government implements a price ceiling of $15 on..
Assume the public holds a fixed amount of currency and the chartered banks have a desired reserve ratio of 10%. What is the ultimate change in the dollar size of loans caused by the action of the Bank of Canada? What is the ultimate change in the dol..
As noted in the chapter, separating the production of electricity from its delivery has led to considerable deregulation of producers. (See page 599 in the textbook.) Briefly explain which of these two aspects of the sale of electricity remains susce..
The government is contemplating to implement actions to prevent climate change. If no action is taken then climate change will happen with a probability of 20%. There is a probability of 100-20 that there will be no climate change. We will not be abl..
If you want to be 99?% confident of estimating the population mean to within a sampling error of (plus or minus) ±30 and the standard deviation is assumed to be 150?, what sample size is? required? (Use table of values for the standardized normal dis..
A school is overcrowded and there are three options. The do-nothing alternative corresponds to continuing to use modular classrooms. The school can be expanded, or a new school can be built to "split the load" between schools. What is the incremental..
What is the difference between the index number for the year you were born and the Consumer Price Index for January of 2012.
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