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As a budding entrepreneur, you have purchased a small bagel shop. You have engaged in a market study to categorize your customers' willingness to pay for a meal (coffee+bagel) into 8 equal sized groups: ($5.00, $4.50, $4.00, $3.50, $3.00, $2.50, $2.00, $1.50). All of your costs are fixed except labor and materials, which cost $2.25 per meal sold.
What price should you charge for a meal? Does your answer depend on the total number of consumers?
Matt and Johnny both purchase pop and chips at the same convenience store. They have different tastes for pop and chips, so Matt buys 3 cans of pop and 10 bags of chips whereas Johnny buys 15 cans of pop and 2 bags of chips.
The economy is doing well in 2000. Revenue was rising and the stock market hit new record highs. As a result, the price of housing rose.
Which nation should specialize in the production of Good X and which country should specialize in the production of Good Y.
Calculate the payback period for an asset that has a first cost of $40,000, a salvage value of $8000 anytime within ten-years of its purchase, and generates income of $6000 per year.
Suppose the firm decided to lease the large factory, and has put down a non-refundable deposit of 4,000 for that factory. Provide a recommendation concerning which factory firm should lease, and the number of boxes of chalk it should produce.
Short term Treasury bills [3 and 6 month] have current annual rates of interest around 0.5%. Use that info plus your best forecast of inflation to calculate the real rate of interest on those bills.
effects of implicit variables on supply and demand. Elucidate what would happen to the price of a pair of jeans if the following happened.
When a recession is over, do people begin to immediately feel the effects of an efficient economy? Use the experience of the most recent recession to justify your answer.
Develop an exponential smoothing forecast with smoothing constants α =0.1 and 0.3. What would be the forecast for week 11?
Elucidate how do Keynesian and Real Business Cycle economists differ on the right response to Japanese stagnation.
You estimate that the price elasticity of demand for clinic visits is ?0.25. You anticipate that a major insurer will increase the copayment from $20 to $25. This insurer covers 40,000 of your patients, and those patients average 2.5 visits per ye..
Explain how will these events impact the equilibrium price and quantity of generic soft drinks.
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