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Jose rents office space for $20,000 per year. He uses the office to fill out tax returns for 1<000 clients per year. If the office rent increases to $25,000 per year, the marginal cost of filling out tax returns will:
A. Not change
B. Increase by $5000
C. Increase, but we cannot determine the amount of the increase with the information given.
D. Increase by $5
As a consequence of a 1976 court case that Ralph Nader won against an airline that had "bumped" him, the federal government adopted a rule requiring airlines to compensate people who were denied boarding despite holding a confirmed reservation.
Discuss the risks of introducing market mechanisms of supply and demand in situations where ethical issues are present.
Compare social welfare under the bribe with social welfare in the case where the police officer always abides by the law.
Estimate each of these alternatives from the perspective of economic efficiency, equity, and the likely long-term impact on the firm.
Which of the following would not occur in the short run if a binding price floor were raised in perfectly competitive market? What is price discrimination? Assume that the wholesale skim milk market is perfectly competitive. Suppose demand is describ..
Consider a problem such as Costumed Characters in Times Square harassing tourists for money. Give examples of a SMORC policy, a Behavioural policy and a CMORC policy (either version) to deter this problematic behaviour. What distinguishes each policy..
q1. suppose that bargaining as envisioned by the coase theorem can take place and that the homeowners initially hold
Spalding Doughnuts wants to know about its waiting line. Currently, Spalding Doughnuts uses a single-server, single-phase system when serving customers. What is the average number of customers waiting in line? What is the probability of having more t..
many professional sports athletes have incentive clauses in their contracts. these indicate tha a the team owner has
In June 2008, the U.S. retail gas price jumped from $3 to $4 a gallon. This is a 33% increase in price from January 2008. During that time, the total quantity of gasoline purchased fell by 3%. Supplies of gasoline produced also decreased from one mil..
Show the effect of each of the following events on the market for coffee by stating 1) if the equilibrium price went up, down, or stayed the same and 2) if the equilibrium quantity went up, down, or stayed the same:
One months ago, they added five workers and productivity also increased by 50,000 pages. Copiers cost about twice as much as workers. Would you recommend they hire another employee or buy another copier.
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