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A 12-year-old boy, while crossing a bridge over the defendant's trolley tracks, swung an 8-foot-long wire over the bridge. The wire touched the defendant's uninsulated trolley wire, which ran over t
Consider a standard six sided die, numbered 1 through 6 on each face. The probability of rolling each number is 1/6. a.) Let X equal the sum of the values from two independent rolls, then E[X] is b.)
The marginal revenue curve of a monopoly crosses its marginal cost curve at $30 per unit, and an output of 2 million units. The price that consumers are willing and able to pay for the output is $40
A firm faces the following average revenue (demand) curve P = 120 - 0.02Q where Q is weekly production and P is price, measured in cents per unit. The firm's cost function is given by C = 60Q + 25,0
A monopolist has the following short-run total cost function and demand function Total Cost: TC = 32 + 2Q + 1/2Q^2 Marginal Cost: MC = 2 + Q Demand: Q = 52-2P where P is the price per unit of output,
Suppose that the price of a stock is $50 at the beginning of a year and $53 at the end of the year, and it pays a dividend of $2 during the year. Calculate the stock's current yield, capital-gains y
For both sets of calculations, compare the firm's output price and the calculated average variable cost and average total cost. Should the firm shutdown immediately when the total fixed cost equals
Suppose you are a painter, and the price of a gallon of paint increases from $3.00 a gallon to $3.50 a gallon. Your usage of paint drops from 35 gallons a month to 20 gallons a month. Perform the f
A factory operates in a village and employs 200 workers. The workers are willing to work for any salary. The items produced by the factory are sometimes more demanded by consumers than at other time
The marginal cost of maintaining apartments that are over 15 years old can be expressed as P = 90 + Q The marginal cost of maintaining apartments newer that can be expressed as P = 120 + 2Q where P is
Consider a Cournot model where the market demand is P = a - qA - qB. Both firms have constant average and marginal cost of c. Demand, however, is uncertain: it is high (a = aH) with probability f an
Find the Required Interest Rate Your parents will retire in 18 years. They currently have $250,000 and they think they will need $1,000,000 at retirement. What annual interest rate must they earn to
A food-products company has recently introduced a new line of fruit pies in six U.S. cities: Atlanta, Baltimore, Chicago, Denver, St. Louis, and Fort Lauderdale. Based on the pie's apparent success,
(a) Calculate the opportunity cost of an increase in the number of hours spent studying in order to earn a 3.0 grade point average(GPA) rather than a 2.0 GPA. (b) Is the opportunity cost the same fo
Assume that a monopolist decides to maximize revenue instead of profit. How does this operating objective change the size of the deadweight loss If you are a "benevolent" manager of a monopoly firm
At its current level of production, a profit-maximizing firm in a competitive market receives $12.50 for each unit it produces, and it faces an average total cost of $10. At the market price of $12.
A certain town has yearly exports that total $40 million. It has no imports. The town's marginal propensity to consume residence expenditures from their income is 0.15 The town's marginal propensity t
Consider the market for a product with two types of potential users: those in proportion f have inverse demand schedule P = 5 - 0.5 Q, while the remaining 1 - f have inverse demand P = 10 - Q. Norm
There is a monocentric town that is shaped in a circle. The yearly rent for land in the CBD there is $36,000 per dunam. The value of the agricultural land on the outskirts of the town is $1,500 per
A certain area has 7500 workers who are willing to work at any salary. The area has two places of employment, A and B. At A, the value of the marginal production of the workers is w = 1800-0.1L At B,
For 6 months a year, the Laffer store experiences a lot of demand, so during this period it hires 40 workers. It pays each of them $100 per day. For the rest of the year, the store experiences much
a. Use a T-Account to show the impact of this transaction on the FNB's balance sheet. The funds a bank has on deposit at the Fed count as part of its reserves. b. Assume that before receiving the di
Bella can produce either a combination of 60 silk roses and 80 silk leaves or a combination of 70 silk roses and 55 silk leaves. If she now produces 60 silk rose 80 silk leaves, what is the opportun
Demand for flower bouquets in a suburban town is described by: QD = 50 - 5 P + 2 Y, where Q is quantity, P is price per unit, and Y is an index of consumer income. Similarly, supply is described by
A monopolist's demand curve is described by Q = 50 - 0.5 P The firm's cost function is TC = 10 + 2 Q a) Find the profit-maximizing quantity and price. b) If the industry is regulated in a way th