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Suppose the demand and supply schedules for rental apartment in the city of Gotham are given below Monthly Rent $2500 $2000 $1500 $1000 $500 Apartment Demanded 10,000 12,500 15,000 17,500 20,000
In the fall of 2003, many analysts predicted that the dollar would fall in value relative to other currencies because the trade deficit in the United States had become too large. What effect would a
Suppose your market research leads you to conclude that there are two distinct groups of consumers interested in the PCC, restaurants and homes. You determine that each has a different demand curve.
If the local government can enforce a rent control law that sets the maximum monthly rent at $1500, will there be a surplus or a shortage, of how many units and how many units will actually be rente
Assume that the Roach Coach (a converted bus) averages 15 miles per gallon, with a standard deviation of 3 miles per gallon, and that fuel consumption is normally distributed. Using the Normal Distr
Suppose that a monopoly firm finds that its MR is $50 for the first unit sold each day, $49 for the second unit sold each day, $48 for the third unit sold each day, and so on. Further suppose that t
A delivery company is considering adding another vehicle to its delivery fleet, all the vehicles of which are rented for $100 per day. Assume that the additional vehicle would be capable of deliveri
You and a friend get together to start a business, based on your friend's patent of a new and better ice cream scoop. Because you have the patent, you are the only producer of this product. You are
Suppose that Boeing is the Stackelberg leader and chooses its quantity first, then Airbus makes a move observing what Boeing has done. Solve the equilibrium in this sequential game. Be sure to chara
Assume that instead the market is monopolized and the monopolist's marginal cost function is 2+Q. Calculate the consumer and producer surplus. How much has the producer gained versus the competitive
Suppose a government began the year with a debt load of $500, an interest rate of 5% and ran a deficit of $50.At the end of its second year to maintain the same debt load of $500.
Suppose that a risk-free investment will make three future payments of $100 in one year, $100 in two years, and $100 in three years. If the Federal reserve has set the risk-free interest rate at 8 pe
Suppose that you are a monopolist who produces gizmos, Z, with the total cost function C (Z) = F + 50Z; where F represents the firms fixed costs. Your marginal cost is MC = 50. Suppose also that the
The supply and demand equations of a good are given by : Qs=-8+P and Qd= (80/3)-(1/3)P respectively. P is measured in dollars. Suppose the government decides to impose a constant per unit tax of $t on
Suppose that businesses buy a total of $100 billion of the following resources labor, land, capital, and entrepreneurial ability from households, if the households receive $60 billion in wages, $10
Assume I sell rubber garden hoses. I sell my hoses for $10 each and expect to sell 100,000/year for the next three years. My fixed costs are $185,000 and my variable costs are expected to be $650,00
Special equipment can be designed and built for $80,000. This equipment will have a salvage value of $70,000 in year 1, which will decrease b y $10,000 through year 8. Operation and maintenance cost
Assume the current prices in the market are challenged by the regulatory agency, resulting in a new maximum price of $2,000. How will this change the industry output and market share for each compan
Joe, the owner of Super Taco, has historical sales info from recent price changes. Joe is certain no other demand factors, such as compeitor prices or consumer income, have significantly changed.
CHEMCO operates two plants, A and B, which produce the same product. The capacity of Plant A is 60,000 gallons while that of plant B is 80,000 gallons. The annual fixed cost of Plant A is $2,600,000
Each morning, the Roach Coach Express departs on it delivery rounds, bringing needed donuts, hot coffee and similar nourishment to corporate clients at various locations around Colorado Springs. Ass
Assume rubber hoses will be outlawed in 3 years due to water scarcity and watering regulations. My rate of interest on borrowed funds is 7.5%. What's the cash value of the firm if I want to sell it
Two key elements that affect demand are the season (Xmas and Summer are best times) and timing of other film releases. Both Studio Roxie and Midnight Flicks are producing action movies. The 2 studio
You just bought a bagel shop. A market study shows your customers are willing to pay for a bagel into 9 equal-sized groups: ($3.00, $2.75, $2.50, $2.25, $2.00, $1.75, $1.50, $1.25, $1.00).
Mark owns ABC Karate . He has a 2-yr lease and those monthly payments are fixed over that time period. Mark wants to increase his revenues and is trying to decide to raise or lower the monthly fees