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Skyscraper City has a subway system, for which a one-way fare is $1.50. There is pressure on the mayor to reduce the fare by one-third, to $1.00. The mayor is dismayed, thinking that this will mean Skyscraper City is losing one-third of its revenue from sales of subway tickets. The mayor's economic adviser reminds her that she is focusing only on the price effect and ignoring the quantity effect. Explain why the mayor's estimate of a one-third loss of revenue is likely to be an overestimate. Illustrate with a diagram.
Sarah is awake for 100 hours per week. Using one diagram, show Sarah's budget constraints if she earns $6 per hour, $8 per hour, and $10 per hour. Now draw indifference curves such that Sarah's labor supply curve is upward sloping when the wage is be..
Using the DD-AA model, analyze the output and balance of payments effects of an import tariff under ?xed exchange rates.
Discuss the relevant prices and quantities for the current market situation and identify what you believe is the equilibrium price and quantity.
Delineate the differences between the terms persuasion, manipulation and seduction as they relate to human communication.
write the economic analysis section of a business proposal. this will include statements about the market structure and
Assignment : Long-Term Investment Decisions
17. assume a certain firm in a competitive market is producing q 1000 units of output. at q 1000 the firms marginal
5. Explain how the factors below contributed to the subprime meltdown.(a) Financial innovations in the mortgage markets.(b) Agency problems.(c) Information problems Briefly discuss the political economy of a typical banking crisis
The nation of Ectenia has 20 competitive apple orchards, which sell apples at the world price of $2. The following equations describe the production function and the marginal product of labor in each orchard:
Conduct a VRIO analysis of a successful firm or organization relative to one of its rivals. Contrast the value, rarity, imitability, and organizational aspects of its tangible and intangible resources and capabilities to those of its rival.
The monthly rental rate for a satellite dish antenna is $200. There are 100 residents in the condominium community. The maximum marginal benefit any resident will obtain from the antenna is $50 per month.
Automobile manufacturers produce a range of automobiles such as sports utility vehicles, luxury sedans, pickup trucks and compact cars. What fundamental economic question are they addressing by making this range of products.
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