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Applying the basic concepts of Microeconomics (Opportunity Cost, decisions made at the margin, agents respond to incentives). a) Discuss the individuals response to the presence of government provided unemployment insurance. i.e. will the worker take more or less time to find new employment b) Discuss firms response to government requirement to pay for unemployment insurance c) given your Microeconomic analysis do you expect the presence of our system of unemployment insurance to raise or lower the rate of unemployment
Starting from a long run equilibrium, trace the effects for both a competitive firm and the market of a permanent reduction in market demand for: Consider two consumers, John and Maria, each with an quantity of two goods: corn and sug
Suppose a country has a population of 61 million, of which 37 million are in the working-age population. Of those, 11 million are not in the labor force and 23 million are employed. The labor-force participation rate is
Start-Up Industries is a new firm that has raised $320 million by selling shares of stock. Management plans to earn a 20% rate of return on equity, which is more than the 12% rate of return available on comparable-risk investments. What will be Start..
Your product fails about 2% of the time, on average. Some customers purchase the extended warranty you offer in which you will replace the product if it fails. Would you want to price the extended warranty at 2% of the product price? Discuss both mor..
A firm sells its product in a perfectly competitive market where or firms charge a price of $80 per unit. Illustrate what price should firm charge in short run.
An increase in the supply of a product can be shown graphically as a rightward shift of the supply curve. The graph will clearly show that we would expect the equilibrium price to fall and the equilibrium quantity to increase. Use a general solution ..
A stamping machine is classified as seven-year MACRS property. The cost basis for the machine is $120,000, and the expected salvage value is $10,000 at the end of 12 years. Compute the book value at the end of three years for tax purposes.
Suppose the demand for good X is given by Qdx = 10 - 2Px + Py + M. The price of good X is $1, the price of good Y is $10, and income is $100. Given these prices and income, how much of good X will be purchased?
In a Price Taker market, with a total fixed cost =$200 Also given Output per month (3) tons, Total Cost = 1550, Price per ton = 500,. How would I calculate (and what formula would I use for each), Marginal Cost (MC), Average Variable Cost (AVC), Aver..
Identify at least four key points of a relevant economic article from either the Strayer Library or a newspaper. The article must deal with any course concepts covered in Weeks 1-8.
Illustrate what varibles other than price appear to have the biggest impact on the demand for mcdonald's products. how much influence does the company have over these varibles.
Elucidate how you would address each of the main problems in the organization.
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