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You are a member of the Metropolitan Taxi Commission, which sets taxi fares for your city. You have been told that long lines of taxis form at the airport during off peak hours. At peak hours, on the other hand, few taxis are available and long lines of passengers waiting for cabs. It is proposed that taxi fares from the airport to downtown be cut by 10 percent during off peak hours and increased by 10 percent during peak hours. How do you think these changes would affect the queuing patterns of taxis and passengers? Do you think the proposal is a good one from the passengers' point of view? From the cabbies' point of view? From the standpoint of economic efficiency? What do think if the taxi commission stopped setting fares altogether and allowed passengers and drivers to negotiate any price they wanted.
ACME Corporation consists of 250 grocery stores throughout the Midwest. At the starting of 2008 its statement of net worth showed the following data,
The good people at Cooper Bank are looking at five mutually exclusive alternatives that have a ten-year life and no salvage value. Due to intellectual property concerns, they can only invest in one project. Park Bank uses a MARR of 9%. Which one..
What is the difference between contractionary and expansionary monetary policy?
Spell out the types of policies also practices companies should develop if they want to keep their workers from unionizing.
Assume an economy's real GDP is $30,000 in year 1 and $31,200 in year 2. Illustrtae what is the growth rate of its real GDP.
which country has the greater opportunity cost of producing olive oil b)the country which would end up exporting wine and which would export olive oil after the elimination of trade barriers.Olive Oil yield 40 barrels 30 barrels
Use the concepts of marginal cost and marginal revenue to derive an optimal capital budget for Company X, which has identified 7 possible investment projects and determined its cost of capital.
Illustrate what objectives are pursued by members of the OPEC cartel. Discuss what actions they can take to achieve these objectives.
Illustrate which loan carries the lower effective rate. Consider fees to be the equivalent of other interest.
Compute the coefficient of price elasticity for the price ranges given in the schedule and complete the first column of the table. What do you notice about the algebraic sign of the values you have just computed? Why is this so?
Explain how does the timing of lay-off and hiring decisions made by firms explain the misleading characteristic of this indicator.
What is the implication for the expected value and standard deviation of the returns on your portfolio if you invest in N (instead of only 3) of these assets and N becomes very large?
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