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For what values of a, ß, and g does Jason's technology have constant returns to scale? Increasing returns to scale? Decreasing returns to scale?
Draw an isoquant for checking out 200 customers an hour where the variable inputs are checkout clerks and self-scan checkout machines.
You have an economics test in two weeks. It will cover both micro and macroeconomics. How should you allocate your studying time to get the best grade? Why?
Suppose that John, April, and Tristan have two production plants for producing orange juice. What is the best assignment of oranges between the two plants?
How would you interpret her preferences? In each of the following cases, calculate the PDV of the specified amount under the specified circumstances.
Consider the market for brownies in an economy with two people, Zoe and Joe. Individual demand schedules for Zoe and Joe are provided below.
Suppose the interest rate is 10 percent. Does the PDV of the promised payments depend on the bond's maturity? Why or why not?
Democratic hopeful Walter Mondale criticized the Reagan administration's economic record. Evaluate the logic of Mr. Bush's argument.
Suppose Dan's cost of making pizzas is C(Q) = 4Q + (Q2/40), and his marginal cost is MC = 4 + (Q/20). Dan is a price taker. What is Dan's supply function?
Its marginal cost is MC = 3Q2. What is firm's profit-maximizing output when the price is P = $243? What if the fixed cost is avoidable?
How does the price preferred by an author who gets a 25 percent royalty compare to that preferred by an author who gets a 15 percent royalty?
Consider the preferred prices of the author and the publisher of an electronic book. Would the two disagree about the price to be charged for the book?
Many airlines operate a hub-and-spoke system in which passengers headed. How does this system reflect the presence of economies of scope?
What are their long-run and short-run cost functions? What are their long-run and short-run average cost functions for positive output levels?
Noah and Naomi want to produce 100 garden benches per week in two production plants. What is the best assignment of output between the two plants?
For each price point (including the maximum and minimum), calculate the quantity demanded from your demand equation for that price.
Consider the following combinations of Petroleum and Coffee for the fictional, two-good economy of Kolombia. Draw Kolombia's corresponding PPF?.
Illustrate the effect of a compensated change in the price of nuts. Does this change alter the consumption of nuts or bolts?
What is Sam's compensating variation for the proposed policy? Can you compute it without knowing his preferences? Why or why not?
If not, is there a way to compare the benefits of these projects using the concept of compensating variation?
Suppose the price of a music download falls from $2 to $1. Using the method described, calculate the change in Albert's consumer surplus.
How much revenue will the government raise by taxing Beatriz? How does that revenue compare to her economic losses?
Create a Laspeyres price index using June as the base period (that is, use Arnold's consumption bundle for June to create the fixed weights).
If a regular bag costs 50 cents and a jumbo bag costs 75 cents, how many of each will Olivia purchase? What if the jumbo bag costs $1?
How does this problem change Alan's budget constraint? On the indifference curves you've drawn, show his new best choice.