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How much would the firm's profit increase compared with the uniform profit-maximizing price you found in (a)?
What is its total revenue? It costs the firm $80 to produce a unit. With the given sales volume, what profit, if any, is the firm making?
In addition, two trees had been removed from the back yard. Discuss Billy's legal rights.
How do you think this measure affected the U.S. production possibilities frontier? Do you think all industries were affected equally?
Production Possibilities Under what conditions would an economy be operating inside its PPF? On its PPF? Outside its PPF?
Choose one of the resources and write a summary in your own words. Especially emphasize how the resource is an example of microeconomics or macroeconomics.
Does this mean that making uninformed decisions is irrational? How do you determine how much information is the right amount?
Marginal Analysis The owner of a small pizzeria is deciding. What considerations must be taken into account if such a decision is to increase profi tability?
Rational Self-Interest If behavior is governed by rational self-interest, why do people make charitable contributions of time and money?
Micro Versus Macro Some economists believe that to really understand macroeconomics. How does microeconomics relate to macroeconomics?
Economic Decision Makers Which group of economic decision makers plays the leading role in the economic system? Which groups play supporting roles?
Definition of Economics What determines whether or not a resource is scarce? Why is the concept of scarcity important to the definition of economics?
If the person were to buy 10 apples, how many bananas could be bought with the funds left over?
Determine the maximum insurance premium that the individual is prepared to pay.
Find a Walrasian equilibrium in which consumer 2 buys strictly positive quantities of all goods. Describe both consumers' consumption in this equilibrium.
Problem 1: What is expected utility theory? Problem 2: On what assumptions is the theory based, and how plausible are these assumptions?
Q1. Define "risk averse". Q2. Why does a risk averse agent offered actuarially fair insurance choose to insure fully?
Determine the equilibrium outcome, or outcomes, when both the seller and the buyer observe directly the quality of any car traded.
(a) Find the firm's optimal wage schedule. (b) What would happen if there were full information?
Which gives you greater total utility, 12 gallons of water per day or 20 gallons per day? Why?
(a) Is the manager a risk seeker, risk neutral, or risk averter? Why?
Given this information, what can be said about this consumer's marginal utility curve for exercise?
Explain the difference between investing and saving. List, and explain, three motivations for investing.
Which of the following goods is most likely to display increasing marginal utility over some range?
In the past few years, the demand for donuts has greatly increased. This increase in demand might best be explained by: