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You run a chain of movie theaters, so you commission a marketing study that categorizes your potential customers into 10 equal-sized groups according to what they're willing to pay for a movie, ($10,$9,$8,$7,$6,$5,$4,$3,$2,$1). It turns out that the low-value customer groups, those with values ($5,$4,$3,$2,$1), are all over 65 years old. All the costs of exhibiting movies are fixed except for the $3.50 royalty payment you must make to the film distributor for each ticket sold.
What price should you charge for movie tickets?
Should you offer senior citizen discounts? If so, how much?
which in this case is lagged second difference. Note that it remains below zero after stock market crash of 1987. You can also do same thing for or variables. Are they fairly consistently away from zero. If so, can you design a rule to make money.
What is the amount of excess reserves in this commercial banking system? What is the maximum amount the banking system might lend?
In general, illustrate what happens to the level of consumer surplus as the price of a good falls.
They ask you what directive they should give to the open market desk. you tell them , being as specific as possibel, using the money multiplier. they ask you for two other ways they could have achieved the same end. You tell them.
Hiro Nakamura is CEO of the Cola King Bottling Company, a small regional producer operating in the Pacific Northwest. Nakamura is considering two alternative expansion proposals
What is the impact of a tax cut in an economy operating under a fixed exchange rate regime on household spending, interest rates.
During the same time, total annual movie admissions have barely changed. What cost factors can explain this trend? In addition, what demand factors might be also be relevant?
Suppose a wage increase from $25 to $27 an hour increases the number of job applicants from 52 to 66. Illustrate what is the price elasticity of labor supply.
Illustrate the situation: Firm X develops a new product and gets a head start in its production. Other firms try to produce a similar product but discover they have higher average total costs than the existing firm.
Conclude cost elasticity of demand at each quantity demanded utilizing formula % chg in QD divided by % chg in cost.
Typical economic decisions made by the managers of a firm .determine and explain which basic economic problem: of what, how, and for whom
Find out the net demand curve facing firm A. Describe A's optimal price and output. Explain how much output do the other firms supply in total.
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