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Suppose a taxi company wishes to start a new business that requires a license from NY City for $30,000. The taxi license is transferable, but only 15,000 is refundable within 15 days of the date of purchase.
What ate the taxi’s fixed costs?..................................................................................
What is taxi’s sunk costs? ……………………………………………………….
Suppose the manager obtains a license but then decides against the business. If another taxi firm offers the manager $20,000 for the license, should the manager accept the offer? Explain
Elucidate how does that fact that many goods are non traded affect the extent of possible gains from trade.
What happens to the income of a factor of production when it becomes more mobile? Other things being equal, would the income to the owners of this factor rise or fall? Why?
Stackelberg (1934) proposed a dynamic model of Duopoly in which a dominant (or leader) firm moves first and a subordinate (or follower) firm moves second. Consider a model in which firms choose quantities sequentially and then compete according to th..
Consider the situation where firm y is downriver from firm x and must cope with the pollution created by production of x output. According to the Coase theorem, If firm x must purchase, from firm y, rights to pollute the river they share, firm x’s pr..
If taxes increase by $500 and the MPC is 0.8, what is the change in consumption and private savings? What is the change in public savings? what is the change in total savings? What is the change in investment?
Your book describes the increase in the money supply as being analogous to giving people more money. If the output of goods and services is not growing at a similar rate, inflation will eventually occur. According to PPP Theory, what will happen to t..
Explain how does global economic competition impact the domestic market and decisions related to the strategy a firm uses to compete.
If unexpected inflation does not exist
Give two (2) examples not provided in the textbook of how the Prisoner’s Dilemma is linked to game theory. Discuss why each player was concerned about the other player in your examples.
q1. elucidate how do the gdp per capitals change after accounting for price indices? explain why is it significant to
Calculate the level of production for which the two methods have the same total costs. Compare the profits of the two manufacturers for production and sales of 200,000 units. Calculate the level of production and sales for which the two methods produ..
Assume that Ravi's marginal utility is 60 utils for the last glass of wine he consumed. If the price of a glass of wine is $4, what is Ravi's marginal utility per dollar worth of wine? What is his marginal utility per dollar worth if the price were $..
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