Question: Two partners who own Progressive Business Solutions which currently operates
Two partners who own Progressive Business Solutions, which currently operates out of an office in a small town near Boston, just discovered a vacancy in an office building in downtown Boston. One of the partners favors moving downtown because she believes the additional business gained by moving downtown will exceed the higher rent at the downtown location plus the cost of making the move. The other partner at PBS opposes moving downtown. He argues, “We have already paid for office stationery, business cards, and a large sign that cannot be moved or sold. We have spent so much on our current office that we can’t afford to waste this money by moving now.” Evaluate the second partner’s advice not to move downtown.
Answer to relevant QuestionsU.S. Supreme Court Justice Stephen Breyer’s book Breaking the Vicious Circle: Toward Effective Risk Regulation examines government’s role in controlling and managing the health risks society faces from exposure to ...Assume the only choice variable is x. The total benefit function is B (x) = 170 x – x2, and the cost function is C (x) = 100 – 10 x + 2x2. a. What are the marginal benefit and marginal cost functions? b. Set up the net ...A security analyst specializing in the stocks of the motion picture industry wishes to examine the relation between the number of Movie Theater tickets sold in December and the annual level of earnings in the motion picture ...Assume a consumer with the utility function U = U (X, Y) = X2 Y2and the typical budget constraint M = PxX + PyYa. Set up the constrained maximization problem and derive the first-order conditions. b. Derive the consumer’s ...Suppose demand takes the form Q = 36 P–1. a. Show that the price elasticity of demand is constant and equal to 21. b. Write the total and marginal revenue functions.
Post your question