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Stan Money maker has been shopping for a new car. He is interested in a certain 4-cylinder sedan that averages 28mpg. But the sales-person tried to persuade Stan that the 6-cylinder model of the same automobile only costs $2500 more and is a better vehicle. How much extra would Stan really be paying for the 6-cylinder if he drives 100,000 miles at $4.00 per gallon?
Consider a supply and demand model of the wholesale gasoline market. If a tropical storm forces some refineries to temporarily withdraw from the market, what curve shifts and in which direction?
If you were the angel investor, what is your certainty equivalent for these two projects? Are you risk-averse, risk-neutral, or risk-lover?
Assume that a firm employs labor and capital by paying $40 per unit of labor employed and $200 per hour to rent a unit of capital. What is the firm's optimal combination of capital and labor?
Choose on which market structure that these businesses fit - monopolistic competition, perfect competition, and oligopoly also monopoly.
When an incumbent maintains a price below the monopoly price in order to prevent entry. The act of charging a low price initially upon entering a market to gain market share.
q1. bob consumes two commodities x and y say chocolate and classical music. more y never hurts but in order to enjoy y
Compute the incremental profit Electron Control would earn by customizing its instruments and marketing directly to end users.
sticky prices also income are often cited as an example of market inefficiencies during recession lay off workers yet many of these firms are related to begin hiring even as the economic situation improved.
If GDP increases in nominal terms from $600 billion in 1994 to $663 billion in 1996 and the price index (1992 = 100) rises from 120 to 130, how much real growth (in 1992 dollars) in GDP occurred between 1994 and 1996?
Other counters that we are running out of cheap energy. Explain which person is correct also why.
find the country with largest budget deficit and largest budget surplus in this list the budget deficit is called the Budget Balance.
A Fenway park, home of the Boston Red Sox, seating is limited to 39.000. Hence, the number of tickets issued is fixed at that figure. Seeing a golden opportunity to raise revenue.
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