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1. What effect, if any, does each of the following events have on the price elasticity of demand for corporate-owned jets?
a. The cost of manufacturing corporate jets rises.
b. Reduced corporate earnings lead to cuts in travel budgets and increase the share of expenditures on corporate jet travel.
2. Since the movie, Avatar, 3-D movies have been popular and charged at a higher price, compared with the traditional 2-D movies. Please analyze the impact of 3-D movies on
a. Price elasticity of demand on 2-D movies.
b. Total revenue (including 2-D and 3-D movies) of theater box offices.
Indicate whether each of the following statements is possibly true or certainly false. The cost-minimizing bundle for y = 50 is l = 10 and K = 40 if labor and capital cost the same, and is l = 12 and K = 37 when labor costs $20 and capital costs $15.
An industry consists of a dominant firm with costs C(Qd) = Qd and 8 identical fringe firms, each with costs c(q) = 1 + q^2. Market demand is Q = 20 - p. What is the supply schedule for a fringe firm in the long run? Sketch the supply. (You would need..
One way to encourage people to spend more on preventative health care is to reduce the price of health care to consumers by decreasing the health insurance copayment. At current copayment levels, if the price elasticity of demand for visits to see th..
Contingency theories try to predict leadership efficiency. Common sense would tell us that not all traits or behaviors of leaders are positively related to effectiveness all of the time. Instead, whether a leader behavior is effective will depend on ..
An elderly physician has built up his own practice into a quite valuable business. Now that he is thinking of retiring, he wants to take on a partner to learn the business and eventually buy the practice in three years. Discuss the plusses and minuse..
Identify some ways that nursing homes can signal high quality to consumers. Which of these signals are most apt to be reliable? What are some strategies for reducing adverse selection in insurance markets? What sorts of problems do these solutions ca..
For the following three cases, use a midpoint formula to calculate the coefficient for the cross elasticity of demand and identify the relationship between the two goods (complement, substitute, or independent).
structure of the essayintroduction which topic 300 wordsbody- discuss the topic from your secondary research with
Create two separate graphs that show current changes in equilibrium interest rates using the MD and MS curves. Describe the following: The Fed's actions to fight recession, The Fed's actions to lower inflation. Describe the transmission process of mo..
A person should consume more of something when its marginal A. cost equals its marginal benefit. B. benefit is still positive. C. cost exceeds its marginal benefit. D. benefit exceeds its marginal cost
Recall the looser pay winner auction experiment done in class. discuss how these experiments explain why the bidders changed their minds toward wanting to bid well above the value of the prize, even though they refused to do so at the beginning.
By itself, the substitution effect of an increase in the wage rate will
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