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Suppose you decided to open a copy store. You rent store (signing a one year lease),and you take out a loan at the local bank and use the money to purchase 10 copiers. Six month later a large chain opens a copy store two blocks away from yours. As a result, the revenue you receive from your copy store, while sufficient to cover the wages of your employees and the cost of paper and utilities, does not cover all of your rent and the interest rate and repayment costs on the loan you took out to purchase the copiers. Should you continue operating your business?
Candice can make 5 units of food per day if she devotes all of her time to food production. She can make 10 units of clothing if she spends the whole day at clothing production. Now suppose a trading ship visits the island each day and offers to buy ..
If Michael is spending all of his money on these 2 snacks which he purchase more chips also less ice cream as well as purchase less chips.
Assume that the supply of soda is more elastic than the demand for soda. Using a supply and demand diagram and a "tax wedge," show whether the buyers or the sellers will bear the bigger burden of a soda tax.
How does a bankers acceptance differ from an ordinary check? Rank the following instruments from most liquid to least >1$bill, share of ibm stock, municipal bond issued in alaska, treasury bill.
Assume re are three possible policies, X, Y and Z, person 1 prefers X to Y to Z and person 2 prefers Z to Y to X. Model this situation as an extensive game and find out its Nash equilibrium
In country B the opportunity cost of 100 gallons of beer is 0.95 tons of cereal. Both countries can experience gains from trade if the exchange rate for a ton of cereal is 96 gallons of beer
Assuming that the marginal cost is zero to provide the rides to those in attendance, what is the best pay-per-ride price
The government has decided to reduce the pollution also from now on will require a pollution permit for each ton of pollution emitted.
Do you think that the AUD will fall as low as US 65C by the end of 2016? Justify your answer. What advantages do you think Australia will have in such a scenario? If the market rate is US 65C then what action could the Reserve Bank of Australia take..
During an election campaign, the incumbent argues that he should be reelected because GDP grew by 12% during his term in office. You know that population grew by 4% over the period, and that the GDP deflator increased from 100 to 108 during the past ..
Walmarts decision in 1994 to continue operating stores in specific cities in Mexico when other firms were pulling out would be classified as
How many tickets to sell to maximize total welfare.
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