Discuss five most important feasibility study factors that make a shopping centre so successful.
In: Economics
A new cement mixing truck can be purchased for $100,000 and will have a salvage value of $50,000 at the end of 5 years. The cost of concrete mix for the truck is $100 per cubic yard. Alternatively, the construction company can pay $105 per cubic yard to have concrete delivered by a third party.
Assume the construction company can order the concrete mix or delivery for the whole year on their account, and pay the full balance at the end of each year. At an interest rate of 10% per year, the minimum cubic yards of concrete that must be used each year to justify the purchase of a truck is closest to:
The answer is C. Why?
I need an explanation.
In: Economics
2. Walmart can use either self-service check out machines or cashiers to process customer purchases. For Walmart, self-service checkout machines and cashiers are perfect substitutes. Suppose that self-service checkout machines can process the purchases of 100 customers per hour and that a cashier can process the purchases of 60 customers per hour. Suppose that the price of operating a self-service checkout machine is 20 dollars per hour and that cashiers are paid an hourly wage of 10 dollars per hour. Answer the following questions:
a) Write down Walmart’s production function for processing customers’ purchases.
b) What is Walmart’s demand for cashiers given the production technology and input prices?
c) What is Walmart’s demand for self-service check out machines given the production technology and input prices?
d) How much will it cost Walmart to process the purchases of 400 customers in an hour?
e) Suppose the minimum wage for workers is increased to 15 dollars per hour. What is the cost to Walmart of processing 400 customers in a hour?
In: Economics
What is the difference between a change in quantity demanded and a change in demand? Suppose the State of Maryland decrees a minimum wage of $15 an hour. What would be the effect of such legislation on the demand for labor? the supply of labor? and on wages?
In: Economics
3. Breezy Point Lodge sits alongside Big Pelican Lake in northern Minnesota. It's surrounded by breathtaking acres of woods and water, and features lots of family activities to enjoy all year long, like golf, tennis, water sports, fishing, snowmobiling and cross-country skiing. Like many vacation resorts, Breezy Point has discovered the advantages of offering its services on an annual membership or "time-sharing" basis. To illustrate, assume that an individual vacationer's weekly demand curve can be written:
P = $5,500 - $2,000Q,
where P is the price of a single week of vacation time, and Q is the number of weeks of vacation time purchased during a given year. For simplicity, assume that the resort's marginal cost for a week of vacation time is $1,000, and that fixed costs are nil. This gives the following total and marginal cost relations:
TC = $1,000Q,
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A. |
Calculate the profit-maximizing price, output, profit level, and consumer surplus assuming a per unit price is charged each customer. |
|
B. |
Calculate the profit-maximizing price, output and profit level assuming a two-part pricing strategy is adopted for each customer. |
|
C. |
Now assume that fixed costs of $780,000 per year are incurred, and that 250 time-share customers ("owners") are attracted when an optimal two-part pricing strategy is adopted. Calculate total annual profits. |
In: Economics
When an economy is open up for more trade are there workers that are affected negatively? If so then what government policies might be enacted? Please explain in detail with any reference or citations. Thanks
In: Economics
In: Economics
The response time (in seconds) was determined for three different types of circuits that could be used in an automatic valve shutdown mechanism. The results are provided in the table below:
| Circuit type | |||||
| 1 | 9 | 12 | 10 | 8 | 15 |
| 2 | 20 | 21 | 23 | 17 | 30 |
| 3 | 6 | 5 | 8 | 16 | 7 |
Construct a set of orthogonal contrasts, assuming that at the outset of the experiment you suspected the response time of circuit type 2 to be different from the other two. ii. If you wished to minimize the response time, which circuit type would you select? iii. Analyse the residuals from this experiment and comment on whether the assumptions of analysis of variance are satisfied.
In: Economics
2. Who benefits from specialization in care labor within the family?
A. Are there efficiency advantages gained where men and women in particular activities, women in care labor and men in market work?
B. Are there distributional advantages where men or women benefit by focusing on market labor or care labor respectively
In: Economics
Q21. A game theorist is walking down the street in his neighborhood and finds $20. Just as he picks it up, two neighborhood kids, Mark and Nancy, run up to him, asking if they can have it. Because game theorists are generous in nature, he says he’s willing to let them have the $20, but only according to the following procedure: Mark and Nancy are each to (independently) submit a written request as to their share of the $20. Let m denote the amount that Mark requests for himself and n be the amount that Nancy requests for herself. m and n are required to be chosen from the interval [0, 20]. If m + n ≤ 20, then the two receive what they requested, and the remainder (20 - m - n) is split equally between them. If, however, m + n > 20, then they get nothing, and the game theorist keeps the $20. Mark and Nancy are the players in this simultaneous-move game. Assume that each of them has a payoff equal to the amount of money that he or she receives. Find all Nash equilibria for this game.
In: Economics
The Cronch Café, located at the Gulf of Mexico, has an increase in business during the summer vacation season. The owner hires a large number of servers as seasonal help. When he interviews a prospective server, he would like to provide data on the amount a server can earn in tips. He believes that the amount of the bill and the number of diners are both related to the amount of the tip. He gathered this sample information. 1) Develop a multiple regression equation with the amount of tips as the dependent variable and the amount of the bill and the amount of diners as independent variables. Write out the regression equation. How much does another diner add to the amount of the tips? 2) Conduct a global test of hypothesis to determine if at least one of the independent variables is significant What is your conclusion? 3) Conduct an individual test on each of the variables. Should one or the other be deleted? Plot the residuals against the fitted values. Is it reasonable to conclude they are random?
| Customer | Amount of Tip ($) | Amount of Bill ($) | Diners |
| 1 | 5.15 | 74.5 | 2 |
| 2 | 4.5 | 28.23 | 4 |
| 3 | 1 | 10.65 | 1 |
| 4 | 2.4 | 19.82 | 3 |
| 5 | 5 | 28.62 | 3 |
| 6 | 4.25 | 24.83 | 2 |
| 7 | 0.5 | 6.25 | 1 |
| 8 | 6 | 49.2 | 4 |
| 9 | 5 | 43.26 | 3 |
| 10 | 4.65 | 62.23 | 1 |
| 11 | 5.6 | 84.81 | 1 |
| 12 | 6 | 34.99 | 3 |
| 13 | 4 | 33.91 | 4 |
| 14 | 3.35 | 23.06 | 2 |
| 15 | 0.75 | 4.65 | 1 |
| 16 | 3.3 | 23.59 | 2 |
| 17 | 3.5 | 22.3 | 2 |
| 18 | 3.25 | 32 | 2 |
| 19 | 5.4 | 50.02 | 4 |
| 20 | 2.25 | 17.6 | 3 |
| 21 | 4.35 | 63.16 | 6 |
| 22 | 3 | 20.27 | 2 |
| 23 | 1.25 | 19.53 | 2 |
| 24 | 3.25 | 27.03 | 3 |
| 25 | 3 | 21.28 | 2 |
| 26 | 6.25 | 43.38 | 4 |
| 27 | 5.6 | 28.12 | 4 |
| 28 | 2.5 | 26.25 | 2 |
| 29 | 6.85 | 53.08 | 7 |
| 30 | 8.6 | 87.85 | 8 |
In: Economics
1) Suppose Peggy consumes only two goods, gasoline and
cigarettes. Her income is $120, the price of cigarettes per pack is
$4 and the price of gasoline per gallon is $2. Currently, she
consumes 40 gallons of gas at optimal level.
a) Sketch the following budget lines. Be sure to show how you
calculated the slopes and end points. (Put gas on the X
axis.).
b) What is optimal level consumption of cigarettes for Peggy? Use
an arbitrary convex indifference curve, indicating the current
consumption combination is optimal.
c) If the government imposes a sales tax of $1 per unit on
gasoline, Peggy will consume 28 gallons of gas. Draw the new budget
constraint and the new optimal basket. Be sure to show how you
calculated the slopes and end points. (Put gas on the X
axis.).
d) What is optimal level consumption of cigarettes for Peggy? Use
an arbitrary convex indifference curve, indicating the current
consumption combination is optimal.
In: Economics
What are specific features of underdeveloped countries? Consider the agriculture and services sector, schooling, population growth, mortality, life expectancy etc.
In: Economics
On December 16th, 2015, FED decided to raise first time the record low target rate of federal reserve fund from 1/4% to 1/2%.
On December 14th, 2016, Fed decided to raise the second time the federal fund rate from 1/2% to 3/4%.
On March 15th, 2017, Fed decided to raise the federal fund rate from 3/4% to 1%.
On June 14th, 2017, Fed decided to raise the federal fund rate from 1% to 1.25%.
On December 13th, 2017, Fed decided to raise the federal fund rate from 1.25% to 1.5%.
On March 21st, 2018, Fed decided to raise the federal fund rate from 1.5% to 1.75%.
On June 13th, 2018, Fed decided to raise the federal fund rate from 1.75% to 2%.
On September 26th, 2018, Fed decided to raise the federal fund rate from 2% to 2.25%.
On December 19th, 2018, Fed decided to raise the federal fund rate from 2.25% to 2.5%.
On July 31st, 2019, Fed decided to cut the federal fund rate from 2.5% to 2.25%.
On September 18th, 2019, Fed decided to cut the federal fund rate from 2.25% to 2%.
On October 30th, 2019, Fed decided to cut the federal fund rate from 2% to 1.75%.
Fed agrees that economic recovery is sound, Also Fed feels that the job market is strengthening, but the long term inflation signs still stabilized. Now Fed feel it is not necessary to maintain such accommodating easy monetary policy including very low interest rate until unemployment improves further and inflation rate goes up to 2.0%.
Fed decided that the size of the mortgage bond purchase as QE policy was winding down on October 2014 as the economy continues to improve.
The future rate hike will be gradual, depending upon the upcoming economic indicators.
1) What's your opinion about the Fed policy decision by next FOMC meeting?
2) Do you feel that this near-zero interest was a necessary one, or may not work to save declining economy, due to liquidity trap? or can we be back in double-dip recession due to too early exit strategy by the FED's tight monetary policy?
3) Are you concerned about the inflation come back due to such easy monetary policy with zero interest rate for long time? if so, how fast is the Fed supposed to tighten its monetary policy as an normalizing strategy?
4) Will the new president's proposal of spending increase on infrastructure and defense as well as tax cut on corporate income tax and individual income tax may overheat US economy to be inflationary? if so, will it cause Fed to speed up the rate hike? If Tariff over trade and possible retaliation could be inflationary, does it give another incentive for Fed to speed the rate hike?
5) Is there any risk that tight Fed policy may put the US economy back into another recession, if tight Fed policy is ahead of curve , although it is gradual tightening? Do you think the US will be in recession the next year(Year 2020)? Yes or No. Can You predict how many times Fed will raise FFR(federal fund rate) this year? or how many times FED will cut FFR due to trade issues and global slowdown?
In: Economics
In: Economics