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Suppose a taxi company wishes to start a new business that requires a license from NY City for $30,000. The taxi license is transferable, but only 15,000 is refundable within 15 days of the date of purchase.
What ate the taxi’s fixed costs?..................................................................................
What is taxi’s sunk costs? ……………………………………………………….
Suppose the manager obtains a license but then decides against the business. If another taxi firm offers the manager $20,000 for the license, should the manager accept the offer? Explain
The university bookstores received 4 million euros from students in exchange for the books. Illustrate what is the total contribution to GDP from the above events.
You put money into an account that earns a 5 percent nominal interest rate. Theinflation rate is 3 percent, and your marginal tax rate is 20 percent. What is your after-tax real rate of interest? Suppose that changes in bank regulations expand the av..
During the period of time that a local university takes phone-in registrations, calls come in at the rate of one every two minutes.
Evaluate whether each of the following statements is true or false. Explain your answer and provide supporting rationale. The short-run aggregate supply (SAS) curve slopes upward because households spend more as their incomes increase. The long-run a..
q1. for you and your neighbor to specialize and trade it must be that the price at which you or your neighbor sells the
PRESENT AND FUTURE VALUES OF A CASH FLOW STREAM An investment will pay $150 at the end of each of the next 3 years, $250 at the end of Year 4, $300 at the end of Year 5, and $500 at the end of Year 6. If other investments of equal risk earn 11% annua..
Suppose that the nonlinear price discriminating monopoly in panel a of figure 12.4 can set three prices, depending on the quantity a consumer purchases. Where Q is its quantity, p is its price, and A is its level of advertising. Its marginal cost of ..
Assume that the world consists of two large open economies _– the U.S. and Europe. Suppose that Europe decides to increase net taxes (T) to reduce its budget deficit. Using the large open economy model (LOE), illustrate and explain how this policy wi..
In Japan and a number of European Countries, the antitrust laws were once much less severe than those in the United States. Do you think that this difference helped or harmed American Industry in its efforts to compete with foreign producers? Why?
An industry consists of three firms with sales of $310,000, $725,000, and $405,000. Calculate the Herfindahl-Hirschman index (HHI). Calculate the four-firm concentration ratio (C4).
What are the strengths and weaknesses of game theory? What are its underlying assumptions? Devise a situation/scenario from your work (or another company in which you are familiar) in which game theory is immediately applicable. Sketch out its specif..
Why might demand for nurse labor by hospitals or other organized health providers be monopsonistic? Use economic models to explain your answer.
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