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An entrepreneur trying to find a location for a sporting goods store has decided to use the index of retail saturation as a guide. She knows that Site 1 has a trading area with 42,374 potential customers who spend an average of $87.50 on sporting goods per year. The only competitor in the trading area has 16,000 square feet of selling space. Site 2 has 38,649 potential customers spending an average of $91.25 per year on sporting goods. In this trading area, two competitors occupy 17,100 square feet of space. The index of retail saturation for Site 1 is: a. 182.86 b. 206.24 c. 231.73 d. None of the above.
In certain industries, firms buy their most important inputs in markets that are close to perfectly competitive and sell their output in imperfectly competitive markets. Cite as many examples as you can of these types of businesses.
Elucidate, with the aid of demand and supply curves, the impact of increased crime on the demand for private security services. On your diagram, show the changes in the equillibrium price and quantity.
Suppose that this year's money supply is $500 billion, nominal GDP is $10 trillion, and real GDP is $5 trillion. What is the price level? What is the velocity of money?
Consider a couple's decision about how many children to have. Assume that over a lifetime a couple has 200,000 hours of time to either work or raise children.
In 2002 business week listed apple Calculator as having one of the worst board of directors: founder Steve jobs owns just 2 shares in the company.
1. what does gross domestic product gdp tell us? how did gdp change from 2008? what caused these changes? what is real
If collusion is not allowed, what kind of market arrangement do you think is likely to result from competitive interactions among these four firms? Calculate the profits of these firms in either case (a and b).
the number of hours per week supplied to a particular market by three individuals at various wage rates. Compute the total hours per week supplied to the market.
Suppose you are examining a small open economy with a large negative trade balance. Describe briefly the key pros and cons for this country if it decides to introduce a set of restrictions on international trade in order to achieve a situation when e..
The vast majority of consumers have a relatively inflexible leisure budget. The net effect on spending in the metropolitan area then is zero, or very closes to zero. Read above sentences and explain how a “substitution effect” is relevant for evaluat..
Keeping your money in a bank seems like a good idea. However, from time to time, depositors lose confidence in banks. we learned that when many people lose confidence in a bank at the same time it is called a “bank run”, and when this happens to many..
The government wants to stimulate the economy. By how much will aggregate demand at current prices shift initially before multiplier effects.
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