Erosion costs. Fat Tire Bicycle Company currently sells 40 comma 000 bicycles per year. The current bike is a standard​ balloon-tire bike selling for ​$100 ​, with a production and shipping cost of ​$25 . The company is thinking of introducing an​ off-road bike with a projected selling price of ​$375 and a production and shipping cost of ​$275 . The projected annual sales for the​ off-road bike are 16 comma 000 . The company will lose sales in​ fat-tire bikes of 8 comma 500 units per year if it introduces the new​ bike, however. What is the erosion cost from the new​ bike? Should Fat Tire start producing the​ off-road bike?

Why is efficiency an important economic goal?

"richard wants to know how his company handles late lunches but does not want to ask anyone. instead, he watches others take late lunches and observes the manager's reaction. richard is"

Susie buys two goods - rounds of golf and massages. suppose that the price of a round of golf is $20, and the price of a massage is $30. in a typical week susie will play two rounds of golf, getting 20 units of satisfaction from the second round. she normally buys three massages each week, with the third giving her 30 units of satisfaction. if she were to buy a fourth massage in a week, it would give her 20 units of satisfaction. if the price of massages is reduced to $15, which of the following outcomes might we expect to occur? a) susie would leave her consumption choices unchanged because of diminishing marginal utility in the consumption of massages. b) susie would buy more massages and more rounds of golf, as predicted by the substituion effect. c) susie would buy more massages and fewer rounds of golf, as predicted by the substitution effect. d) susie would buy more massage and fewer rounds of golf, as predicted by income effect.