Economics Answers

what is happening to the U.S. trade balance in each of these situations?
a. higher international trade barriers for imported products in U.S.
b. prices in US increases more than prices abroad
c. economic recession starts in Canada
d. nominal exchange rate of US dollar appreciates

Kinkead Inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be -$10 million, but its FCF at t = 2 will be $20 million. After Year 2, FCF is expected to grow at a constant rate of 4% forever. If the weighted average cost of capital is 14%, what is the firm’s value of operations, in millions?

Consider the following short run production function L=variable input Q= output Q=10L-0.5L^2. Suppose that output can be sold for $10 per unit. Also assume that the firm can obtain as much of the variable input as it needs at $20 per unit.
A. Determine marginal revenue product function
B. determine marginal factor cost function
C. Determine the optimal value of L, given the objective is to maximize profits

Use the theory of clubs to explain why the Big 10 Conference is expanding.

Suppose Clayton Kershaw is the best pitcher in baseball. To keep him from moving to another team the Dodgers offer him a huge raise in salary. They do not, however, raise ticket prices.

a) One friend says, "The Dodgers are idiots. They should raise prices to cover their higher costs." What do you tell her?

b) Another friend says, "The Dodgers are idiots. They should raise their prices in response to higher demand." What do you say to him?

How does the invariance principle impact sports as it relates to economics?

How does the all-or-nothing theory play into the economics of sports?

Why are stadiums largely built on the edge of town or in the suburbs rather than in the center of town? Hint: Refer to the hoteling model.

Why have far fewer basketball and hockey teams sought single-use stadiums than have baseball and football teams?

true or false most new start businesses fail