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1. A trendy French restaurant is one of the first businesses to open in a small corner of a commercial building still under construction. The restaurant has received rave reviews and has lines of diners waiting for tables most nights.
In the short run (next few months), what measures should the restaurant take to maximize its profits? Explain. In the long run (next six months and beyond), how can it maximize its profits? (Assume that the impressive state of demand is permanent).
2. In recent years, Chrysler Corporation initiated three-shift or nearly continuous (21-hours-per-day) production at a number of its plants. Explain why Chrysler's decision might have been prompted by movements in its wage costs or capital costs, or both. Why would Chrysler have instituted this production change for its most popular (and profitable) vehicles, its minivans and Jeep Cherokee? What risks might such a plan pose?
Right Price Investors, Inc. is considering the purchase of a $415,000 computer with an economic life of five years. The computer will be fully depreciated over five-year MACRS property for tax purposes. The market value of the computer will be $55,00..
In a Keynesian framework, using an AD/AS diagram, which of the following government policy choices offer a possible solution to a recession? Which offer a possible solution to inflation?
Two countries, X and Y, satisfy the Solow model with α = 1/3 and productivity A=1. In Country X, investment is 54% of GDP and the population grows at 1% per year. In Country Y, investment is 8% of GDP, and the population grows at 3% per year. In both..
What could the Fed do in 2002-2003 in order to bring the economy back to full-unemployment ? What did the Fed actually do? Explain in detail
Use EViews to get the correct critical t values for constructing the interval.
You just received a car loan for $20,000. The terms of the loan are for 5 years at 6% annual interest, compounded monthly. What is your monthly payment? For the first month, how much of this payment goes to principal? For the first month, how much of..
One of the objectives of the European Union is to abolish restrictions on the free movement of all factors of production, including labor, services, and capital. Considering the latest financial crisis in Cyprus, would you suggest modifying the EU Ch..
In a paper, analyze the relationships among total and average fixed cost, variable cost, and total cost. Address what happens to price and quantity with changes in demand and supply. You will need to identify then define the relationships.
Describe the possible barriers to entry and exit for: (a) a physician wanting to establish a solo practice office in internal medicine, (b) a company offering a health club facility in the same building where employees work, and (c) a tertiary hospit..
Find an article from a reputable news outlet (this should be a news article not an academic one) that both relates to the content of this semester and contains a graphic presentation of data. Assess how well the author's graphic accurately communicat..
Aaron and Barry, living close to the entrance to the Yosemite National Park, sell the same kind of drinking water to tourists. Every day in the morning, Aaron carries some water to the park. Barry, observing how much water Aaron brings to the park, d..
Suppose an economy consists of 300,000 individuals 16 years and older, 160,000 are employed, and 18,000 are unemployed but actively seeking work. In this example the labor force is:
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