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1. What would a 10 percent increase in the price of movie tickets mean for the revenue of a movie theater if the price elasticity of demand was, in turn, 0.1, 0.5, 1.0, and 5.0?
2. Suppose the price elasticity of demand for movies by teenagers is 0.2 and that by adults is 2.0. What policy would the movie theater implement to increase total revenue? Explain why senior citizens often obtain special price discounts.
Assume the interest rate (and your discount rate) is 10 percent what is the actual payoff The correct answer is $13,518,048 (rounded to the nearest dollar) But I keep getting $12,289,134 (rounded to the nearest dollar)
Suppose that David has $1000. In the beginning of a year he decided to put his money in a saving account with 5% interest rate per year. The CPI was 150 in the beginning of that year. He expected that the CPI would be 153 in the beginning of the n..
Discuss forecasting and explain why is it so important in the management of business firms and other enterprises also determine the different types of forecasting?
What taxes must be paid on this dividend, and what is the after-tax amount of the dividend?
Max Whitley, manager of Whitley Construction, builds new homes in a booming community in the Midwest. Although the sales have slowed down because of a national recession, it now looks as if the recession is about to end. Max wants to be ready with..
The Federal tax code allows businesses but not individuals to deduct the cost of health insurance premiums from their taxable income. Consider a company named HeadBook that could either spend $5000 on an insurance policy for an employee named Vane..
Suppose the consumption function is given by C = a + bYd where a and b are constants (b is the marginal propensity to consume), and Yd is disposable income, equal to Y - T. Taxes vary with income and are equal to t0 + tY where t0 and t are constant..
We wish to establish which one of these additional variables will reduce the residual-sum-of squares the most when included with those in X1. Describe an efficient procedure for doing this.
If the Federal Reserve Bank wants to increase i by 10 percentage points (e.g., from 2% to 12%), at what level should it set the supply of money?
Suppose that all firms' marginal costs increased to MC = 20. Verify that the increase in marginal cost causes total industry revenue to go up.
Which of the following is most likely to shift out the Arbocali production possibility frontier?
Thinking globally. Compare the composition of spending in the US federal budget to the federal budget in Canada, which is similar to the United States in income level and federal structure. How does the spending mix differ? What factors might acco..
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