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You run a chain of movie theaters, so you commission a marketing study that categorizes your potential customers into 10 equal-sized groups according to what they’re willing to pay for a movie ($10, $9, $8, $7, $6, $5, $4, $3, $2, $1). It turns out that the low-value customer groups, those with values ($5, $4, $3, $2, $1), are all over 65 years old. All the costs of exhibiting movies are fixed except for the $3.50 royalty payment you must make to the film distributor for each ticket sold. What price should you charge for movie tickets? Should you offer senior citizen discounts? If so, how much?
Calculate the present worth of the following geometric gradient series cash flow: Annual interest Rate =8.89 %, Annual cash flow increases 29% each year, The first year value is $52 and the series is 8 yrs long starting at EOY 1 .
An interest rate of 10% compounded continuously is desired on an investment of $15,000. How many years will be required to recover the capital with the desired interest if $2,030 is received each year?
According to the Bureau of Labor Statistics, 8.3% of the labor force was unemployed in January 2012. A random sample of 100 employable adults was selected. Using the normal approximation to the binomial distribution, what is the probability that exac..
Calculate the average cycle stock for this item using the order quantity in part a. c. Assuming there are 12 periods per year, calculate total cost per year.
What will happen if the growth rate of the money supply exceeds the growth rate of GDP? What will happen if the growth rate of the money supply falls short of the growth rate of GDP? What will happen if the velocity of the money supply decreases?
Which of the following is true for a market with no externalities under perfect competition? Which of these is a property of public goods?
Consider a static (one-period), closed economy with one representative consumer, one representative firm, and a government. The level of capital K and government expenditures G in the economy are both fixed exogenously. Formally define a competitive ..
Which of the five characteristics listed in the text for human service professionals do you think is most important? Explain why.
In a perfectly competitive market, demand for hairbrushes goes down. How does the market and a typical firm respond in the short and long run? Explain and draw the market and then the typical firm (two drawings, one for market, one for firm)
Compare the market-wide result of the individual perfectly competitive firms' choices of profit-maximizing output level with the choice of the monopolist. Explain the implications of the break-up for the profitability of industry members, for soci..
illustrate what is james opportunity cost of producing chickens which person has an absolute advantage in which activities which person has a comparative.
In contrast, suppose that the CPI was 140 last year and is 132 this year. What is this year’s rate of inflation? What term do economists use to describe this second outcome?
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