The souvenir shop next to Wrigley Field in Chicago sells sports banners for $5 each. The owner pays $1,000 monthly rent. Two blocks away from the baseball stadium, a souvenir shop sells the same banners for $3 each. The owner there pays $600 rent. Is the price of the banner at the shop next to the stadium high because rent is high or is rent high because the price is high?
Answer to relevant QuestionsCalculate, using the following table, the marginal revenue product of capital for each of the five quantities of loanable funds when the price of eggs is $0.10 per egg. From time immemorial, religious writers and philosophers have considered income inequality a troublesome fact of life and have offered ideas concerning that problem. Discuss. The case for inequality can be made on the grounds that equality stymies economic growth. Explain. What is aggregate supply? Draw an aggregate supply curve and explain its shape. What factors influence aggregate supply? How does the problem of double counting arise in calculating GDP, and how is it corrected?
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