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The Burrito Barn is considering a price reduction on the Firegut Burrito, which currently sells for $5.00. Jim, the owner of Burrito Barn, knows that the price elasticity of the Firegut is roughly equal to -2.3 over the range of prices being considered for the change. The Firegut has been selling at the brisk pace of 500 burritos per week. To increase his market share in the fast-food market, Jim would like to increase sales of the Firegut to 750 per week. What price should Jim set?
Analyzing many indicators of the macroeconomic situations in an economy, which includes interest rate, income, CPI, inventory levels, wage, consumer confidence and unemployment.
Assume a country that basically consumes 100 pairs of shoes per hour, all of which are imported. The price of shoes is $40 per pair before a ban on importing them is imposed.
If the substitution effect dominates the income effect, then as increase in the wage rate will increase the quantity of labor supplied by an individual. The more complicated a production process is
A topic that reflects one of the following: government regulation of environmental issues in the wake of disasters; government regulation of financial markets; government nationalization or partial-nationalization of a business often left to priva..
Which interest rate represents the opportunity cost of holding money - the real or the nominal interest rate? Explain and argue intuitively why the nominal interest rate (eg, the yield on a riskless bond) cannot fall below zero.
Find out the marketplace value of output and household saving. What is the relationship of saving and investment.
How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.
What is its sustainable growth rate. Illustrate what must its profit margin be in order to achieve its sustainable growth rate.
supply curve is applicable to a nation's economy. Create appropriate diagrams to assist in answering the following questions:
What are the FC, ATC, AFC, AVC and MC at these output levels?
The ability to create new products and process and to organize production to make goods and sevices available.
Illustrate two policies could you use to reduce the total amount of emissions. Explain how would you decide what was the best level of emission reduction.
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