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Some restaurants are open only for breakfast and lunch but are closed for dinner. What economic factor's determine if it is better to close the restaurant for dinner or leave it open for all three meals times. What general costs (Fixed and/ or variable) must be covered in either circumstance?
Suppose in Fiscalville there is a 5 percent tax on the first $10,000 of income, but a 15 percent tax on earnings between $10,000 and $20,000 and a 25 percent tax on income bet
Financial crises happen in various parts of the world. There have been many to which you can reference. Discuss the impact of financial crisis in Europe during the 2010 timefr
The city council of a small college town decides to regulate rents in order to reduce student living expenses. Suppose the annual market clearing rent for a two bedroom apartm
In April 1978, Fidel Castro announced that Cubans who wanted to leave Cuba for the United States could do so from the port of Mariel, Cuba. Within 6 month, about 125,000 (main
Suppose the daily demand function for pizza in Berkeley is Q = 1,525 – 5P. The variable cost of making Q pizzas per day is C(Q) = 3Q + 0.01Q2 , there is a $100 fixed cost (whi
Suppose you own a movie theater and most of your costs (the film rental, security, the land rental, etc.) are independent of how many people show up. What is likely to be th
Consider the example presented in Figure 13-3. Imagine that the current price of waste disposal is $0.025/lb and the average waste disposal is 2.40 lb/p/d. As noted in the dia
An old, fully depreciated asset (defender) has O&M cost of $1,500 this year, and these will increase by $1,500 each year. The current salvage value of the asset is $4,500, and
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