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Suppose a household can buy a new jet ski for $2,000 or they can save this money and earn 6% annual interest (assume these are the only choices they are considering with this money). What is the opportunity cost of buying the jet ski? What is the opportunity cost of saving the money?
Four students from your economics class are sitting in a local restaurant Talk about the marketplace for coffee.
What do we refer to the extra output or change in the total product caused by the addition of the one more unit of variable input?
Nick loves the new Taco Bell product. His demand function for Taco Bell-Doritos Locos is as follows: Qd= (8Y – Y 2 ) – 0.1Pt; Y is a number between $2≤Y≤$6 and stands for income. Pt, the price of Taco Bell Doritos Locos, is equal to $10. Draw precise..
The Olde Yogurt Factory has reduced the price of its popular Mmmm Sundae form $2.25 to $1.75. As a result, the firm’s daily sales of these sundaes have increased from 1,500 per day to 1,800 per day. Compute the arc price elasticity of demand over thi..
Consider the second stage of competition between Samsung, HTC and Sony. Once Apply has chosen some output level q1, Samsung, HTC and Sony will compete simultaneously over their product quantities. Write down the best response functions for Samsung, H..
Illustrate what greens fee should the operator set on weekday also Elucidate how many rounds will be played n the weekends.
An investment pays $2,100 per year for the first 3 years, $4,200 per year for the next 8 years, and $6,300 per year the following 12 years (all payments are at the end of each year). If the discount rate is 8.75% compounding quarterly, what is the fa..
Why do most countries use trade protection tools? Is there any theoretical justification to use trade protection tools? Explain why rich countries subsidize agricultural sector in their economies. Explain why rich countries subsidize high-tech firms ..
Suppose the Fed announced that they planned to keep short run interest rates low for a period of two years. This year, the 1 year USTS zero coupon bond interest rate is i = 0.0025 and next year the interest rate on a 1 year zero Coupon bond is expect..
Also during that first year, the cookie business incurred costs that required outlays of money amounting to $9,000. What was Zach's economic profit (loss) for the year.
Suppose the firm chooses this input combination. What is the firm's short run cost function? What are the firm's fixed costs? What are the firm's variable costs?
You are the manager of a firm that produces output in two plants. The demand for your firm's product is P = 80-Q, where Q = Q1 + Q2. The marginal cost associated with producing in the two plants are MC1 = Q1 and MC2 = 8. How much output should be pro..
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