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Fast Food. Wendy's recently changed the price of their classic Single burger from $1.39 to $1.49. Sales went from 497/day to 366/day. Across the street, the Bojangles chicken sandwich maintained its price of $1.99 but sales rose from 172/day to 188/day. What is the cross-price elasticity of burgers with chicken sandwiches?
A 10 year series of $10,000 annual deposits is followed by 10 more annual deposits of $20,000, which is followed by 20 more years at $30,000 per year. For the total 40 year period, calculate the equivalent present worth deposit as well as the bala..
The BXC Company manufactures various types of parts for automobiles. The manger of the factory wants to get a better understanding of the overhead costs. The overhead costs include supervision, indirect labor, supplies, payroll taxes
The division's revenue for the year is $75 million. c. On March 31, you decide to stop throwing away $50 a month on convenience store nachos. You buy $200 worth of equipment, cornmeal, and cheese and make your own nachos for the rest of the year.
Suppose the hourly wage is $10 and the price of each unit of capital is $25. The price of output is constant at $50 per unit. The production function is F(L,K)=L^1/2*K^1/2 If the current capital stock is fixed at 1,600 units, how much labor should..
Compare the equilibrium levels of consumption C, government spending G, and planned investment I in Parts g and h. Based on this comparison, why might some economists prefer expansionary fiscal policy while others prefer expansionary monetary poli..
For what values of a is he risk averse, risk neutral, and risk loving? From now on, assume that a = 1/2. Johnny owns a house that would cost $100,000 to replace should it ever be destroyed by fire.
A new chemical remediation tank is needed. Current technology tanks, which costs $150,000, MUST BE DRAINED AND TREATED EVERY TWO YEARS AT A COST OF $30,000; THE TANKS WILL LAST TEN YEARS, AND EACH WILL HAVE A SALVAGE VALUE OF 5%. OF FIRST COST.
Suppose the number of points on an economics midterm (P) can be characterized by the following production function: P = 10H-4B where H is the number of hours spend studying and B is the number of beers in the week prior to the midterm.
determine the present equivalent value of $400 paid every three months over a period of seven years in each of the follwing situations: a) the interest rate is 12% componded annualy. b) the interest rate is 12% compounded qarterly.
Assume Firm Y's production function is given by the following Cobb Douglas equation: Q = 0.5 x L0.6 x K0.5 where L denotes labor and K denotes capital. a. Does the production function exhibit increasing, decreasing or constant returns to scale Expl..
Suppose that the political conflicts between the U.S. and oil exporting countries caused the oil exporting countries to institute an oil embargo against the U.S. Then the U.S. government started considering imposing a tax on gasoline
Now assume that intermediaries come from a competitive market with an equilibrium price of $8 per unit for their services, that is, any buyer or seller who wants an intermediary's services must pay $8 for them. What is the maximum per unit that se..
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