Exploring Macroeconomics
8th Edition
ISBN: 9781544337722
Author: Robert L. Sexton
Publisher: SAGE Publications, Inc
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Chapter 3, Problem 2P
To determine
Market forces decides the types of movies to produce.
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Refer to the Front Page to answer three questions.
FRONT PAGE
March Madness Becomes Sadness
Ticket prices for the college basketball championships always skyrocket when the
68-team draw is announced. And they jump even further as the Final Four teams
emerge. The year 2020 was no different. The 700 floor seats that are sold to
students for $40 apiece were already reselling for as much as $4,670 in early
January. If the history of March Madness is a guide, those tickets could have sold
for more than $10,000 each once the Final Four teams were known. In 2020,
however, there wasn't a Final Four: Fear of the coronavirus convinced the NCAA
to cancel that year's tournament. The only madness was among those that
paid scalpers' prices for tickets that got only $40 refunds.
Source: Media reports, March 10-14, 2020.
Instructions: Enter your response as a whole number.
a. What was the initial student price of a ticket to the NCAA finals?
$
per ticket
b. In January 2020, there was (Click to select)…
The Agriculture Research Center of a country (a government organization) introduced a new and innovative irrigation
technique that would ensure that water usage declined by almost 40 percent. Part of this would be achieved by reducing
wastage of water caused by field inundations. This would not only be more sustainable in the long run, but would also
benefit farmers. Samira Fernandes, one of the leading researchers at the Center, believes that this innovation would make
farming more efficient since a majority of the farmers, if not all, implemented it. Bob Johnson, her colleague, however felt
that farmers might be reluctant to use the new irrigation technique.
Which of the following, if true, would support Samira's view?
A. Switching costs involved in adopting this new technology are low.
B. Farmers in neighboring countries have usually been reluctant to use new techniques.
C. Traditional farming practices have served farmers well in the past.
D. The opportunity cost of the investment…
Elvira College has an enrollment of 1,000 students and is located in a small Midwestern town named Johnsonville. Johnsonville has a total population of 2,500 people. The nearest town is 20 miles away. Most of the residents shop locally, but they travel about once a month to the larger city and pick up the large-ticket items. Johnsonville has one fairly good-size supply store named Jameson's Grocery. The only other place in town where you might buy supplies is at the gas station/convenience store located on the edge of town. What competitive situation is Jameson's Grocery experiencing?Competitive Situation:Explanation:
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- 4D Karaoke (4DK) is getting hot in Manhattan. For those who are new to the experience, 4DKaraoke comes with special 4D glasses that give you the image of an enthusiastic audience thatscreams and shouts as you sing along. You can choose your preferred audience.There is currently one 4DK bar in the Village, but two new companies have announced plansfor creating their own bars: Z-R-Us and the company you work for, GAStar. The companythat owns the technology has given one-bar licenses to these two entrants with the assurancethat they will be the only two licenses issued in Manhattan for years to come.The two entrants are currently trying to determine their best locations, which they have eachnarrowed to the Village and Midtown. If both bars are located in the Village, then each willreceive a net profit of $10m. If both bars located in midtown then GAStar gets $19m and KR-Us $21m. If GAStar locates in the Village and Z-R-Us in Midtown, then GAStar gets $22mand Z-R-Us $9m. Finally, if BAStar…arrow_forwardRefer to the article below: FRONT PAGE College Tuition Up Again College gets more expensive again. In-state tuition at public four-year colleges rose 2.3 percent in 2019-2020, to an average of $10,440 per year. Out-of-state students paid an average of $26,820 to attend. Private four-year colleges also saw even bigger price hikes: 3.4 percent-to an average of $36,880. Tuition prices have been outpacing general inflation rates for many years. Source: The College Board. If tuition keeps increasing at the same rate as in 2019-2020, how much will it cost to complete a degree at a private college in four years (2019-2023)? Hint: Future value = Present value x (1 + Growth in prices) Next year's tuition = This year's tuition x (1 + Growth in prices) Instructions: Round your responses to the nearest whole dollar. Tuition freshman year (2019-2020) Tuition sophomore year (2020-2021) Tuition junior year (2021-2022) Tuition senior year (2022-2023) Total tuition $ $ $ $ $arrow_forwardMiron Floren, of Lawrence Welk Show fame, now tours the country performing at accordion concerts. A careful analysis of demand for tickets to Mr. Floren’s concerts reveals a strange segmentation in the market. Demand for tickets by senior citizens is described by Qo = 500P^–3/2 , while demand by those under 65 years old is Qy = 50P^–4. If the marginal cost of a ticket is £3, how should tickets to Mr. Floren’s concerts be priced to maximize profits? A. £3 for senior citizens and £8 for those younger B. £6 for senior citizens and £12 for those younger C. £9 for senior citizens and £4 for those younger D. £4.71 for all tickets E. £12 for senior citizens and £4.50 for those youngerarrow_forward
- Refer to the article below: FRONT PAGE College Tuition Up Again College gets more expensive-again. In-state tuition at public four-year colleges rose 2.3 percent in 2019-2020, to an average of $10,440 per year. Out-of-state students paid an average of $26,820 to attend. Private four-year colleges also saw even bigger price hikes: 3.4 percent-to an average of $36,880. Tuition prices have been outpacing general inflation rates for many years. Source: The College Board. If tuition keeps increasing at the same rate as in 2019-2020, how much will it cost to complete a degree at a private college in four years (2019-2023)? Hint: Future value = Present value x (1 + Growth in prices) Next year's tuition = This year's tuition x (1 + Growth in prices) Instructions: Round your responses to the nearest whole dollar. Tuition freshman year (2019-2020) Tuition sophomore year (2020-2021) Tuition junior year (2021-2022) Tuition senior year (2022-2023) Total tuition $ $ $ tAarrow_forwardJoan is an employee of a manufacturing company. She was called to the office of her boss one day. The boss wanted to talk to her about the new technology that was going to be introduced. While her boss was talking, Joan's eyes were on the painting on the wall, she was not sitting straight and she kept her hands in her pocket. If you were the boss of Joan, would you consider her actuation as rude? If yes, why? If no, why not?arrow_forwardThe closing case explores the political economy of Saudi Arabia. For decades, Saudi Arabia's political system has relied on religious teaching for direction. The state controls much of the country's economic activity, and while per capita income is not unlike that of the United States, its distribution is uneven, unemployment is relatively high, and the potential for social unrest is a concern. The country saw some changes recently when King Salman bin Abd al-Aziz Al Saud came to power following the death of his brother. The new king immediately gave his son, Muhammad bin Salman, significant power. Crown Prince Muhammad bin Salman is using his new power to undertake significant economic and political reforms in the country, reforms designed to help better position the country in today's world. While some of the reforms have been applauded, others have met with strong resistance, suggesting that transitioning Saudi Arabia to a new place will not be easy. The crown prince has also come…arrow_forward
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