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A town planning board must decide how to deal with the Kendall Elementary School building. Twenty years ago, the Kendall school (one of four in the town) was closed due to falling enrollment. For the last 20 years, the town has rented 60 percent of the building space to a nonprofit organization that offers classes in the creative and performing arts. The group's lease is up, and now the board is mulling other options
Smith and Jones are stranded on a desert island. Each has in her possession some slices of ham (H) and cheese(c). Smith prefers to consume ham and cheese in fixed portions of 2 slices of cheese to each slice of ham. Her utility is given by Us= Min..
Peter Minuit bought an island from the Manhattoes Indians in 1626 for $24 worth of glass beads and trinkets. The 1991 estimate of the value of land on this island was $12 billion. What rate of return would the Indians have received if they had ret..
Suppose market demand is given by Q= -200P + 8,000. What will be the short run equilibrium price quantity combination. Suppose everyone starts writing more research papers and the new market demand is given by Q= -200p +10,000.
England, France, and Germany. If you enter the English market, you have a 0.5 chance of big success (selling 100,000 units at a per-unit profit of $8), a 0.3 chance of moderate success (selling 60,000 units at a per-unit profit of $6), and a 0.2 c..
A duopoly faces a market demand of p=120-q. Firm 1 has a constant marginal cost of MC1=20. Firm 2's constant marginal cost is MC2=40. Calculate the output of each firm, market output,
Normal people are willing to pay $250 and their desire to purchase doesn't vary with time. Ignore the time value of money and compute the optimal pricing scheme of the iphone. Assume that there are equal numbers of each customer type and the MC of..
The following table is the pay off matrix for zero sum game. Estimate the each players dominated strategy of the following zero sum game?
Set Y1 back to $2,000. Suppose that expected income (Y2) doubles to $40,000 per year. What happens to your current consumption? What happens to your saving?
The local economists estimate that Y is equal to $12,000 and Monopoly has set Pc at $10. If Monopoly's MC of serving another customer is equal to $1, what is the profit maximizing price for seasonal passes
A major marketing company is interested in evaluating the return to television advertising on sales. For that they want to use the following simple linear regression model: where qi is measured in millions of dollars, and Ai is a binary variable eq..
She can, however, get insurance that would completely reimburse to her the $100,000 if her ring was stolen. What is the largest premium she would be willing to pay if her U-function is : (i) U = Y1/4 (ii) U = Y4 (iii) U = Y where Y denotes the amo..
it is projected to increase next year by 2%, then decrease by 3% in the following year, and then increase by 5% the third year. What is the average inflation rate for the projected price of coffee over the next 3 years
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