Assume that Vandelay has an unmet demand for 2,000 Sam Malone style houses. Given the 1,000,000 DLH capacity, Arthur Vandelay, production manager, located a nearby factory space that they could rent and use to assemble remaining items. The rent is $960,000. In addition, Vandelay Industries has a strictly worded contract with their shipping partner, J-Peterman Trucking, that Peterman will only pick up tiny homes from the primary factory. Thus, Vandelay needs to ship the items made at the rented factory back to the primary factory. At what average shipping cost per tiny house would Vandelay Industries be indifferent between going forward with this rented space and not fulfilling the remaining orders

Alandlord rented an art studio to an artist. under the terms of the signed, written, two-year lease, the artist agreed to pay the landlord $1,000 per month and to assume responsibility for all necessary repairs. after the first year of the lease, the artist assigned the balance of his lease to a sculptor. the landlord approved the sculptor as a tenant and accepted two rent payments from her, and then the landlord sold the building to an investor. the sculptor had made two payments to the investor when an electrical fire broke out in the studio, injuring the sculptor. the fire was caused by faulty wiring. the landlord was aware that there was a dangerous wiring problem when he leased the property to the artist. but when the landlord discovered how costly repairs would be, he decided it would be more profitable to sell the property than to repair it. the problem was not easily discoverable by anyone other than an expert electrician, and the landlord did not tell the artist, the sculptor, or the investor about the problem. the sculptor sues to recover damages for her injuries. from whom can the sculptor recover?

Choose the statement that is incorrect. a. search activity occurs only in markets where there is a shortage. b. when a price is regulated and there is a shortage, search activity increases. c. the time spent looking for someone with whom to do business is called search activity. d. the opportunity cost of a good is equal to its price plus the value of the search time spent finding the good.

In north korea, a farmer’s income is the same as a dentist’s income. in a country with a mixed or market economy, the difference between those two professions might be more than 5 times different. how can you explain the fact that individuals doing the same work in different countries do not earn comparable salaries?