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Adding four or more flights to existing routes, it will have to add two pilots and flight attendants. Add a new route, it will also have to add a ground crew and maintenance staff. Could you have me t
Discuss the differences in executive decisions concerning pricing, product design, and advertising between a company that operates in a perfectly competitive market.
For many corporations, a major portion of the cost of production is fixed in the short run. Should these very large fixed costs be ignored when the executives are making output and pricing decision
Treating the marginal cost curve as the "supply curve" and using the given demand curve, what price and quantity would a competitive market give?
The price of capital is $25 per unit and capital is fixed at 8 units in the short run. The price of labor is $5 per unit. What is the variable cost of producing 80 units of output?
Explain why the short-run supply curve of a perfectly competitive firm is a portion of marginal cost curve which lies above the minimum point of a average variable cost.
Consider the application of the demand-revealing process to land assembly. We defined D as the developer's offer for the combined area of all parcels, What is the condition that determines whether o
How about if we try an EXAMPLE of MR=MC for a perfectly competitive firm? How many units would the above profit-maximizing firm produce?
Price ceiling sets a maximum legal price that a seller may charge, typically placed below equilibrium. What do you think of a government placing a price ceiling the next time gasoline prices rise a
So that only 2 workers can move there from Home. Calculate how the movement of these two workers affects the income of five different groups.
Initially, there are 11 workers employed in Home, but only 3 workers in Foreign. Find the effect of free movement of labor from Home to Foreign on employment, production, real wages, and the income
How do you think the government should regulate logging on publicly owned lands? Should similar regulations apply to privately owned land?
Explain why such a strategy may not be credible unless the Federal Reserve has sufficient independence from the government to credibly commit to a low inflation target.
Calculate the tax optimal tax rates if the government must raise $50 in revenues. You can use the compensated demand curves as also representing the normal demand curves in this question.
Demonstrate using a consumer's diagram (budget constraints and indifference curves) that a tax on barley that leaves each consumer buying the same amount of barley as before can still create an exce
What would that do to your consumption this year? Would you spend more, or less. In your answer, discuss the income and substitution effects of the program.
What would that do to your labor supply? Discuss what the substitution effect will be of the new invention, and what that will do to your decision to work.
Depreciation on his boat and other equipment, as calculated using IRS rules, was $15,000. What was John's profit as would be calculated by an accountant.
Illustrate how the following variables would change as the U.S. transitions to its new balanced growth path: capital, output, and consumption.
Discuss three leading families whose wealth arose at least partly from monopoly. Is their wealth still important? Discuss the values that are provided by competition itself.
What evidence helps you to make these judgements? Explain the replacement effect, which may cause monopoly firms to innovate less rapidly.
Explain why under normal conditions of time-cost trade-offs and benefit curves, a dominant firm will usually lean toward imitating rather than innovating.
This causes the equilibrium price of shavers to fall from $30 to $22 and the equilibrium quantity to increase from 40 to 50 shavers. What is the coefficient of price elasticity of demand (Ed) for sh
What is the natural rate of unemployment for this economy? What is the growth rate of output? What is the growth rate of the money supply?