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Assume that Saudi Arabia lets other members of OPEC sell all the oil they want at the existing price which the Saudis set and other members accept. The daily world demand for OPEC oil is given by:
Find out the technical rate of substitution. Does the technology show diminishing technical rate of substitution? Explain.
A company want you to use rate of return analysis to evaluate the economics of buying the mineral rights to a mineral reserve for a cost of $1,500,000 at year 0 with the expectation that mineral dev
What three factors find out whether two economies with separate fiscal and monetary authorities must form a currency union? Write down an illustration of each factor by using NAFTA economies.
Cummins Engine Corporation of Columbus, Indiana take in advance to decrease the effect of the exchange rate fluctuation on company profitability?
What effect would a 30 % reduction in the number of new homes completed encompass on Mapco's sales (avoid the impact of the price cut of the Surefire trimmer)?
Calculate the arc price elasticity of demand over this price and consumption quantity range.
1) Compute the marginal cost curve for Ajax. 2) Given Ajax's pricing strategy, find out the marginal revenue function for Ajax?
Draw diagram showing effect on typical grower's average total cost curve. (i.e. sketch a "before" and "after" ATC schedule). Determine the effect of this technological change on minimum efficient
Rather than lump sum tax, now assume that government were to impose tax of 300 per unit. Again, determine profit maximizing price/output level pair?
How much revenue does owner make at current price?
Many people search out and buy "bargains" at garage and yard sales. Write down some implicit costs associated with this type of shopping.
Draw Jane's budget constraint. Provide values for the l- and c-intercepts.
Now assume that borrowing rate-but not savings rate-changes to 60%. Add Harold's new budget constraint to your graph for Part (a). Provide value for new current-consumption intercept.
Compute the aggregate quantity demanded when the price is $14?
Plot Chris's budget constraint. Illustrate the values for intercepts and the slope.
Compute profit-maximizing price and quantity of subscriptions for U.K. Compute profit-maximizing price and quantity of subscriptions for US. Indicate each on the suitable graph.
It is sometimes said that smart business manager ignores sunk costs. Explain whether your answer to b is consistent or inconsistent with idea that managers must ignore sunk costs.
What, if any, shortcomings arise from monopoly pricing strategy (efficiency and consumer surplus)?
Compute the price of each product if the firm decides to sell them separately?
Can you think of even more profitable bundling strategy?
Pass laws which give nurses more flexibility in paying back college loans.
Describe why Vera's preferences are of very special type here. How would you graph them?
Draw Paul's indifference curves for U = 5, U = 10, and U = 20.
Illustrate through some examples that every other way of assigning income provides less utility than does point identified in part b. Graph this utility-maximizing situation.