Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Economics


Home >> Microeconomics

The World of Videos operates a retail store that rents movie videos. For each of the last 10 years, World of Videos has consistently earned profits exceeding $30,000 per year. The store is located on prime real estate in a college town. World of Videos pays $2,200 per month in rent for its building, but it uses only 50 percent of the square footage rented for video rental purposes. The other portion of rented space is essentially vacant. Noticing that World of Videos only occupies a portion of the building, a real estate agent told the owner of World of Videos that she could add $1,350 per month to her firm's profits by renting out the unused portion of the store. While the prospect of adding an additional $1,350 to World of Videos's bottom line was enticing, the owner was also contemplating using the additional space to rent video games. What is the opportunity cost of using the unused portion of the building for video game rentals?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M9748734

Have any Question?


Related Questions in Microeconomics

Question suppose that the cost function is given by cg 100

Question: Suppose that the cost function is given by: C(g) 100 5g2 (a) Find the fixed and variable cost. (b) Find the marginal cost (c) Find the average cost and the average variable cost. (d) raw the relationship betwee ...

Question use standard ad-as and is-lm analysis to

Question: Use standard AD-AS and IS-LM analysis to illustrate and explain the impact of a monetary expansion in the short run and in the medium run. In your answer, explain why monetary policy is effective in the short r ...

Question when discussing the pin makers we brought up

Question: When discussing the pin makers we brought up marketing cooperatives like Sunkist Oranges. Unlike the pin makers, orange growers control Sunkist's policies by their votes (weighted by their shipment volumes), fo ...

Question assume the demand function for good x can be

Question: Assume the demand function for good X can be written as: QX = 30 - 3PX + 2PY + 0.2I Where PX is the price of good X PY is the price of good Y I is the consumer income. a) Based on the demand curve above, is X a ...

Question a business equipment used for the manufacture of

Question: A business equipment used for the manufacture of commercial goods can be purchased for $30,000. This asset is expected to be sold after 4 years for $6,000. Compute the depreciation amounts every year (depreciat ...

Question give some examples of third-degree price

Question: Give some examples of third-degree price discrimination. Can third-degree price discrimination be effective if the different groups of consumers have different levels of demand but the same price elasticities? ...

Question read the wsj article on the attempted

Question: Read the WSJ article on the attempted monopolization of the plastic clothes hanger market in this week's notes. Why does monopolization have the potential to increase prices and profitability significantly in t ...

Question - suppose there are 100 commuters that use a strip

Question - Suppose there are 100 commuters that use a strip of highway to get to work. They all drive alone and prefer to drive in big cars - it gives them more prestige a makes them feel safer. Bigger cars cost more per ...

Question in these efforts they build scholarship based on

Question: In these efforts, they build scholarship based on reason, balance, and supporting evidence, although much of this scholarship is based on theory. Discuss how political scientists attempt to quantify data, manip ...

Question consider a firm that makes plastic cups it

Question: Consider a firm that makes plastic cups. It produces the cups using two inputs: metal molds and plastic pellets that are melted and injected into the molds. The firm only needs one metal mold to produce any num ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved