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A multiplex movie theater calculates the week-end demand for afternoon shows to be D(p) = 1000-80p and demand for evening shows to be D(p) = 1000-50p.
Suppose you are the manager of a firm that receives revenues of $40,000 per year from the product X and $90,000 per year from the product Y.
Susan made four uniform annual deposits of $1800 in a savings account that earned an interest rate of 2% per year. Her last deposit was made 7 years ago. Determine the future value of her savings 1
Assume you could produce one more widget at a marginal cost of $5. If you do produce that fifth widget, discuss what will your average total cost be? Has your average total cost increased or decreas
The annual expenses are $6000. The annual income from a rented home is $24,000. If the house can be sold for $245,000 at the end of 10 years, discus how much could you afford to pay for it now, if
On February 1, the Miro Company needs to purchase some office equipment. The treasurer has said that he could pay for the equipment as follows. The company is short of cash and expects to be short f
If interest will be charged at 3% every 2 months, with compounding once every 2 months, explain how much office equipment can Miro Company buy now? Determine the effective interest rate?
A bank offers two 30 year, fixed rate, fully amortizing LPMs: an 85% LTV loan at 6%, and an 80% LTV loan at 5.5%. Determine the marginal cost of borrowing if the loan is going to be held for 10 yea
Suppose you are 62 years old, and your house appraises for $450,000. A bank is willing to give you a reverse mortgage at 50% LTV with a 6% fixed contract rate and you choose an option to receive equ
If the rate of growth of real GDP remains unchanged, determine the new rate of growth of per capita real GDP following the increase in the birthrate?
A weekly business magazine presents a 1-year subscription for $48 and a 3- year subscription for $116. If you thought you would read the magazine for at least the next 3 years, and consider 20% as a
Although central banker didn't say so, this may ultimately compel him to resort increasingly to managing money supply by managing the banks' excess cash reserves- stuff from which banks create loans
The Federal Reserve took money out of banking system to raise federal funds rate-the rate at which banks lend each other money overnight-from the 4 percent to 4.5 percent.
When companies in the oligopolistic industries announce a proposed merger, it is often met with resistance from antitrust authorities (such as Federal Trade Commission (FTC) and Department of Justic
It costs $150,000 to buy the machinery and have it installed. IPS Corp. will upgrade its package-labeling machinery. The maintenance and the operation costs, which are $1500 per year for the first t
Determine again the following problem: On January 1, 1965, you purchased a small house in Alameda, California for $20,000. On January. 1, 2015, you sold house for $900,000.
Assume that there is a fall in the cost of shipping goods by railroad. Discuss what will happen to the difference among the average quality of oranges sold in the Florida and the average quality of
Assume that you can work up to 24 hours per day at a wage of $1 per hour (with the remaining hours for leisure) and you are subject to a tax of 50% on all income over $5 per day (the first $5 per da
Suppose that employees are forced to retire after the 45 years and have an annual MRPL of $15,000. Would the existing earnings structure and length of work life be consistent with the firm's profit-
An engineer decides to locate aside money in a 529 Plan for his newborn's college education. He calculates that the child's needs will be $48,000 on her 18th, 19th, 20th, and 21st birthdays.
Explain the price ceilings as an inefficient method to alter the market behavior. Use scarcity rent in your answer. Discuss why would governments use this tool?
Let the supply curve be P = Q and demand curve be P = 12 Q. (a) If a tax of 1 per unit is imposed on buyers, determine the change in equilibrium price and quantity, producer surplus (PS) and consume
Sketch the demand and supply curves for the market for pediatric visits. Label the curves and the axes with titles, and calculate and label the equilibrium price and quantity. Remember, price is in
Determine the price of a perpetuity that has a coupon of $50 per year and a YTM of 2.5% ? If the YTM doubles, discuss what would happen to its price?
Assume the economy is initially in short run equilibrium at a level of output above the natural rate by using the IS-LM model to graphically demonstrate how the levels of income and interest rates c