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A city has built a bridge over a river and it decides to charge a toll to everyone who crosses. For one year, the city charges a variety of different tolls and records information on how many drivers cross the bridge. The city thus gathers information about elasticity of demand. If the city wishes to raise as much revenue as possible from the tolls, where will the city decide to charge a toll: in the inelastic portion of the demand curve, the elastic portion of the demand curve, or the unit elastic portion? Explain.
Suppose that a perfectly competitive firm faces a market price (P) $5 per unit, and at this price the upward-sloping portion of the firm's marginal cost curve crosses its marginal revenue curve at an output (Q) level of 1,500 units.
If sales fall by 20 percent from 1 million papers per month to 800,000 papers per month, what happens to the AFC per paper, the MC per paper, and the minimum amount that you must charge to break even on these costs
Which of these colonies became more like "Creole societies," and why? Were these colonies more similar or more different, and why?
corporate profitability declined by 20 percent from 2008 to 2009. what performance percentage would you use to trigger executive bonuses for that year why what issues would arise with hiring and retaining the best manager
the local botanical society wants to ensure that the gardens in the town park are properly cared for. the group
Customers to Live Theaters, Inc. can be divided into two groups: seniors and everyone else. The inverse demand curves for each of the two groups are given below. The marginal cost (which equals the average variable cost) of serving an additional p..
assuming that no population growth or technological progress occurs, find the steady-state capital stock per worker, output per worker, and consumption per worker as a function of the saving rate and depreciation rate.
The Kentucky Pride Distillers make and distribute a premium-grade whiskey in two distinct markets, one in the Midwest and one in the South. Estimated demand functions in the two markets are Q1 = 150 - P1 Q2 = 200 - 2P2 while unit cost is ATC = 30 ..
Then, develop a linear regression of the data and make a prediction for a 5,000,000 LOC project. What is R2 for your regression model? Based on your R2 value, do you have confidence in this prediction?
A clever sports economics student asked the Athletic Director at his or her university to dig back into the records for data on attendance and prices at the college's baseball games
Fast Food. Wendy's recently changed the price of their classic Single burger from $1.39 to $1.49. Sales went from 497/day to 366/day. Across the street, the Bojangles chicken sandwich maintained its price of $1.99
What impact do you see these have on the cost of doing business and what may have been some of the unintended consequences that have occurred because of our current mindset with the cost of capital?
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