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The World of Videos operates a retail store that rents movie videos. For each of the last 10 years, World of Videos has consistently earned profits exceeding $38,000 per year. The store is located on prime real estate in a college town. World of Videos pays $2,300 per month in rent for its building, but it uses only 50 percent of the square footage rented for video rental purposes. The other portion of rented space is essentially vacant. Noticing that World of Videos only occupies a portion of the building, a real estate agent told the owner of World of Videos that she could add $1,500 per month to her firm's profits by renting out the unused portion of the store. While the prospect of adding an additional $1,500 to World of Videos's bottom line was enticing, the owner was also contemplating using the additional space to rent video games. What is the opportunity cost of using the unused portion of the building for video game rentals?
Analyze how physicians and hospitals have negotiated service contracts with third party payers. Discuss how fee for service versus managed care models of reimbursement have contributed risk avoidance in their contract negotiations. Recommend future s..
What is the impact on the long run adjustment due to this condition. First, look at the impact of the market and then the single firm. What does it do to economic profits or losses, then what happens in the market.
Alpha Industries operates in a highly competitive market. While there are a few other firms in the industry due to the high fixed costs of building plants, rival firms are very aggressive in their pricing strategies. Of the products sold in the indus..
What recommendations, i.e. future strategic direction, would you make for the economy (country) to sustain economic growth? Word limit 1000 words. Learning Outcome: 4 & 5
Consider the market for mustard, which is a complement to hot dogs. Suppose the price of pork, an input in the production of hot dogs decreases. Which of the following accurately describes how the mustard market is affected?
Consider the following information about banking system: What is the value of excess reserves in the banking system? What is the value of deposits in the banking system? How much in government bonds should the Fed sell or buy?
What are the three basic functions of money? Describe how rapid inflation can undermine money’s ability to perform each of the three functions. What are demand shocks? Give an example of a positive and a negative demand shock. What is the difference ..
What are the arguments FOR trade restrictions? Why don't we restrict trade among states with the borders of the U. S.?
If the monopolist is operating in the inelastic range of demand,
You deposit $3,000 in a savings account that earns 8% simple interest per year. How many years will it take to double your balance? If, instead, you deposit the $3,000 in another savings account that earns 7% interest compounded yearly, how many year..
What did the Spanish encounter at the time of the conquest? Myths vs. realities of pre-Columbian Americas? Why such a relatively easy victory for colonizers? What is Mann's overriding thesis, what is he trying to teach us in these chapters?
What is meant by tax incidence? Does it matter for the incidence of a tax on the sale of a good if the tax is placed on the seller or if it is placed on the buyer of the good? Explain.
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