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Q1. Why might you expect to see flat royalty payments in home-based franchises but revenue-based royalties in franchisees that operate from commercial buildings? (Hint: Among the most popular home-based franchises are cleaning services offered to businesses, and delivery services for seniors who live at home.)a. Is your explanation consistent with the fact franchised tutoring services often charge a fixed royalty per student enrolled?
Q2. A monopolist has the following demand equation: Q=200-2P. Its marginal cost function is MC=10+2Q.
A. What is the equilibrium quantity and price?
B. Assume a tax of 20 is applied to the monopolist. What is the equilibrium quantity and price?
C. Calculate the tax incidence of the buyers and the monopolist.
As oil prices rose during 2006, the demand for alternative fuels increased. Ethanol, one alternative fuel, is made from corn.
XYZ School District is having budget issues and is facing the possibility of cutting some programs. How could one use ethical principles to address their budget issues?
Describe of the amount of deposit money and the size of the money multiplier. Explain these relationships.
A major state university in the South recently raised tuition by 12%. An economics professor at this university asked his students, "Due to the increase in tuition, how many of you will transfer to another university.
Illustrate what would production at a point outside the production possibilities curve indicate? What must occur before the economy can attain such a level of production.
What are the potential ethical or moral effects of the organization’s social initiative or potential social initiative?
Explain why general level of wages is high in United States and or industrially advanced countries.
A firm will have constant profits of $100,000 per year for the next four years and the interest rate is six percent. Assuming these profits are realized at the end of each year, what is the present value these future profits?
Now discuss the fact that deflation is the central bank's worst nightmare. Make sure you refer to a real interest rate of -2.68%. Why is this environment such a nightmare for the central bank and monetary policy?
It is a common belief that social security benefits will run out in the near future. How can we save social security?
During a war the government puts pressure on producers for heavy equipment, supplies, and services, making each more important.
Bartling Energy Systems recently reported $9,250 of sales, $5,750 of operating costs other than depreciation, and $700 of depreciation. The company had no amortization charges.
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