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marginal airlines runs 10 flights per day at a total cost of $50,000, including $35,000 in fixed costs for airport fees and the reservation system and $15,000 for flight crews and food services. If an 11th flight would have 20 passengers, each paying $85, would it be sensible to run the flight?
If both bid the same amount, the $100 is split evenly between them. Assume that each of them has only two $1 bills on hand, leaving three possible bids: $0, $1, or $2. Write out the payoff matrix for his game, and then find its Nash equilibrium.
A civil engineering consulting firm is evaluating its cash flow requirements for the next 7 years. The company expects to replace computer equipment and furniture at various times over the 7-year planning period. Specifically, the company expects ..
Suppose that the nominal rate of interest is 4 percent and the inflation premium is 2 percent. What is the real interest rate Alternatively, assume that the real interest rate is 1 percent and the nominal interest rate is 6 percent.
Abc Inc. sells bike tires for $25. It's sales have averaged 8,000 units per month. Recently its closes competitor Efg Inc. reduced their price for bike tires form $35 to $30. A result Abc's sales declined by 1.500 units per month.A. what is the ar..
An asset in the 5-yr. MACRS property class cost $100,000 and has no salvage value after six years of use. The asset will generate $300,000 in annual revenues and will require $100,000 in annual labor costs and $50,000 in annual materials costs.
A. Ireland is a very small open economy. Trace the likely economic consequences if the government used an expansionary fiscal policy to stimulate the economy. B. GNP at Current Market Prices for 2007 was 60% higher than the figure for 2000. State a..
Consider again the Solow growth model and the following production function: a). If A = 2, L = 20,000, and K = 400, what is output b). Suppose the labor force grows by 5% so that it is now 21,000. By how much does output increase
A and 20 milligrams of vitamin B while minimizing cost. An ounce of oats contributes 8.5 milligrams of vitamin A and 1.2 milligram of vitamin B, whereas an ounce of rice contributes 6.4 milligrams of A and 2.2 milligrams of B. An ounce of oats cos..
A company makes a piece whose income is 100-0.02n marginal and total cost is \(0.0002n^{2} 10000\) . Where n is the volume of production. What is the volume of production to minimize unit production cost, maximize profit and break even point
Rewrite the model to show that this is in fact a two-variable model rather than a three-variable model. Define the parameters
Suppose that we randomly select a recent graduate of the University of Virginia graduate school of business. This school has a recruiter assessment score of 4.1 and an out- of- state tuition and fees of $ 43,000. Predict the average starting salar..
If you decide to hold $100 less cash than usual and therefore deposited $100 in cash in the bank, what effect will this have on checkable deposits in the banking system if the rest of the public keeps its holding of currency constant
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