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At fenway park, home of the boston red sox, seating is limited to 39,000. Hence, the number of tickets issued is fixed at that figure. (assume that all the seats are equally desirable and are sold at the same price.) seeing a golden oppurtunity to raise revenue, the city of boston levies a per ticket tax of $5 to be paid to the ticket buyer. boston sports fans, a famously civic-minded lot, dutifully send in the $5 per ticket. draw a well labeled graph showing the impact of the tax. on whom does the tax burden fall-the team's, owners, the fans, or both?why?
Lars consumes only potatoes and herring. When the price of potatoes was 9 crowns per sack and the price of herring was 5 crowns per crock, he spent his entire income to buy 5 sacks of potatoes and 10 crocks of herring per month.
a. Explain how asymmetric information about a hidden action or a hidden characteristic can lead to moral hazard or adverse selection. b. Discuss a few tactics that managers can use to overcome these problems.
The demand and marginal revenue curves faced by a firm in a purely competitive market. they different from those faced by a firm in oligopolistic competition.
MacKenzie Company is planning leasing a new asset. The lease would run for eight years and require eight beginning-of-year payments of $100,000 each.
What is the sacrifice ratio in this case? What is the role of central bank credibility in disinflation process and For how many years must the central bank keep the unemployment rate above the natural rate of unemployment
Write a brief description of the fiscal policy of the United States and would you describe it as "expansionary" or "contractionary"?
The company from which Karen is renting decides to try a new pricing strategy whereby the additional cost falls as more tents are rented. The following chart details Karen's total willingness to pay and the total cost of renting tents under the co..
Suppose a soft-drink firm is grappling with the decision about whether or not to introduce to the market a new carbonated beverage with 25 percent real fruit juice. Elucidate how might it use the six decision steps to guide its course of action.
The necessary change in taxes and government spending and the effect on aggregate demand, GDP, and employment.
Article: Why you should worry about big oil. The oil industry is in the business of extracting and selling oil. It is the goal of the oil companies to do this as efficiently as possible.
Suppose you are the manager of a firm that sells its product in a competitive market at a price of 50. Your firms cost structure is c=40 + 5Q2. The profit maximizing output for your company is;
Suppose the Lexington mayor caps the amount police can ne speeding motorists at $500. The police vow to step up enforcement in order to cintinue to deter speeding. How high must the probability of being caught speeding be in order to deter most pe..
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