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The Hard Decision to Sell a Bar After Investing in It
A local restaurant owner who was running a profitable business more many years recently purchased a 3-way liquor license. This gives him the right to sell beer, wine and spirits. The cost was about $75000, since only 30 such licenses are issued by the state. The license is transferable, but only $65000 is refundable if the owner chooses not to use it. After using it for about one year, the restaurant owner realized he was losing dinner customers and his profit profitable restaurant was turning into a noisy unprofitable bar. Subsequently, he spent about $6000 on advertising, offering to sell the license for $70000. Finally he received an offer for $66000. What is your opinion of the owner's decisions? Would you recommend he accept the $66000 offer?
Dana's Doorsteps (DD) is a monopolist in the doorstep industry. Its cost is C= 10Q and demand is P = 30- Q.
Quantity of pizzas demanded soared he following week from 1 pie an hour to 100 pies an hour. Illustrate what was the price elasticity of demand for Domino's pizza.
High Mark Industries sells solar water heaters to households interested in lower energy bills and sustainable energy.
Compute the expected value (revenue) from each project. Compute the coefficient of variation of each project, and find out which project should the company choose. Compute the variance and standard deviation of expected value from each project.
Describe and graph (using AD/AS framework) an example in today's news of fine tuning economy. Assume the MPC in an economy is 0.8, the APC is 0.8 and disposable income is $9 billion. If disposable income increases to $14 billion, what is the new le..
Explain the three criteria that are used to determine whether a particular variable is a worthy candidate to be selected as an intermediate target variable of monetary policy.
explain why would elasticity of demand be important to you in determining the products
Describe the maximum and minimum amounts that can be produced
The similar same set of price quantity combinations are utilized to compute the price elasticity of demand
What is the amount of loans from rest of the world? What is the current account balance? What is capital account balance?
Illustrate the difference among the midpoint price elasticity.
Explain how would either decision change if the government imposed a 20 percent tax on earnings and interest income. Illustrate what would happen if the government exempted interest income.
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