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A barber charges $12 per haircut and works Saturday through Thursday. He can perform up to 20 haircuts a day. He currently performs an average of 12 haircuts per day during the weekdays (Monday through Thursday). On Saturdays and Sundays, he does 20 haircuts per day and turns 10 potential customers away each day. These customers all go to the competition. The barber is considering raising his prices on weekends. He estimates that for every $1 he raises his price, he will lose an additional 10% of his customer base (including his turnaways). He estimates that 20% of his remaining weekend customers would move to a weekday in order to save $1, 40% would move to a weekday in order to save $2, and 60% would move to a weekday in order to save $3. Assuming he needs to price in increments of $1, should he charge a differential weekend price? If so, what should the weekend price be? (Assume he continues to charge $12 on weekdays.) How much revenue (if any) would he gain from his policy?
Why is the Gross Domestic Product important to policy makers and the ordinary civilian?
Explain how do you examine the higher demand has affected the equilibrium wage. In which direction do you think the labor supply and demand shifted.
What is the relation between the price of the bond and the interest rate? If the interest rate is 8%, what is the price of the bond today? How does the demand for bonds vary with the price of bonds?
In the early 1980s, interest rates on long-term debt were at remarkable levels - above 15% with some even higher. Within a decade, rates had dropped precipitously. I have a couple of questions about that What would the effect of a decline in inte..
A bank announces that it has changed its interest computation method to continuous compounding. Now $2000 left in the bank for 9 years will double to $4000. What is the nominal interest rate, compounded continuously, is the bank paying.
"explain" aggregate supply factors determine a nations potential gdp, whereas aggregate demand factors determine whether or not the nation achieves its full employment gd. how does fiscal and monetary policy relate to aggregate demand
lesson 2 production possibilities - written assignment 2nbsp1.nbspnbspnbspnbspnbspnbspnbspnbsp suppose that a nations
In a multiple regression model using 400 students to explain college grade point average, the following explanatory variables and a constant term equal to 1 are initially included in the regression: high school GPA, ACT score, number of credits co..
Your "talking points" should be 3 to 5 paragraphs long. Your audience is a group of managers (technical and non-technical) who are participating in a conference on reducing risks associated with insider threats.
Rob has an income of $10,000 this year and he expects an incomeof $13,200 next year. He can borrow and lend money at an interestrate of 10%. Consumption goods cost $1 per unit this year and thereis no inflation.
What is the difference between gross private domestic in- vestment and net private domestic investment If you were to determine net domestic product (NDP) through the ex- penditures approach, which of these two measures of investment spending woul..
Compute the premerger Herfindahl-Hirschman index (HHI) for this market. Suppose that any two of these firms merge. What is the postmerger HHI.
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