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Why might you expect to see flat royalty payments in home-based franchises but revenue-based royalties in franchises that operate from commercial buildings?
(HINT: Among the most popular home-based franchises are cleaning services offered to businesses, and delivery services for seniors who live at home.)
(A) Is your explanation consistent with the fact that franchised tutoring services often charge a fixed royalty per student enrolled?
Suppose a monopolistic competitor in long-run equilibrium has a constant marginal cost of $6 and faces the demand curve given in the following table:
Paradox Dental, Limited., enjoys a local monopoly in provision of oral examination services in Tuskegee, Alabama. Total and marginal revenue relations for standard procedure are:
a. If Blutarsky only cares about the total amount of alcohol in his basket, what is his marginal rate of substitution of bottles of vodka for six? packs of beer? b. Write out a utility function to represent these preferences.
Explain how does classical economics elucidate its confidence in the ability of natural forces to return the economy to its potential level of real GDP?
Describe the position of India with respect to the comparative advantage it holds in gems and jewellery, software services, and petroleum.
Assume now that there is an increase in demand for the good produced in this market. Market has once again adjusted to long-run equilibrium.
If resources available for human consumption were out of limit, there would be no need for a subject field such as economics. Why do I say this?
Congress is considering a tax credit program for those who purchase energy-efficient appliances. Proponents of the program have said that $400 million will be given directly to taxpayers and argue that this will have an economic effect that is gre..
Illustrate what would you expect to happen to the total expenditures on good X.
Illustrate what is the estimated elasticity of demand for new brand cars with respect to the price of gasoline.
Illustrate what other business decisions are impacted as well, and how. Explain.
Explain what would happen to the slope or position of the AD curve in the following circumstances.
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