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You had been offered a full time job with a salary of $80,000 per year.
You are currently running your own small business with annual revenue of $150,000 and accountant costs of $60,000. If you close your business, you could sell your computer and other equipment for $2,000 and make a 5% annual interest on it.
a. Would you accept the job or continue with your own business? Why? Be specific, provide the numerical logic that compares your income accepting the job offer versus your income not accepting the job offer.
b. If your brother offers you to run your business for $60,000 per year, would you hire him and at the same time accept your own job offer? Why? Be specific, provide numerical logic.
Suppose that the economy improves and the crime rate in West Philadelphia drops, so that the marginal product and average product of a group of 100 police offers is now 55 arrests per hour for any number of police officers. What is the optimal alloca..
was low at a point and time in past human capital is also relevant never ever use selection bias! Equipment is it investment or is it technological change.
The supply of luxury boats is perfectly elastic, the demand for luxury boats is unit elastic, and with no tax on luxury boats, the price is $1 million and 240 luxury boats a week were bought. Now luxury boats are taxed at 20%. What is the price that ..
q.according to the agreement achieved by the administration and the congress were there a breach of the debt ceiling
Florida Citrus Mutual, an agricultural cooperative association for citrus growers in Florida, needs to predict what will happen to the price and output of Florida oranges under the conditions below. What are your predictions? For each part, sketch a ..
As a consequence of a 1976 court case that Ralph Nader won against an airline that had "bumped" him, the federal government adopted a rule requiring airlines to compensate people who were denied boarding despite holding a confirmed reservation.
What is the MRS Is this consumer at an optimum. If not at an optimum should the consumer buy more of the X good or more of the Y good.
In an auction, potential buyers compete for a good by submitting bids. Adam Galinsky, a social psychologist at Northwestern University, compared eBay auctions in which the same good was sold. He found that, on average, the larger the number of bidder..
Find out the optimal crude oil allocation in the preceding example if the profit associated with fiber were cut in half, that is, fell to $.375 per square foot.
A nation has a tax rate of 20% on the first $20,000 of taxable income, 30% on the next $30,000, 40% on the next $20,000 and then 50% on all taxable income above $70,000.
One policy originating in this period sought to break up tribes by removing children from their families and enrolling them in Government-run boarding schools far from home.
Hollywood screenwriters negotiate a new agreement with movie producers stipulating that they will receive 10% of the revenue from every video rental of a movie they authored. They have no such agreement for movies shown on on-demand television. When ..
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