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Assume that total fixed costs are $46, that the average product of labor is 5 units when 10 units of output are produced, and that the wage rate is $12. If labor is the only variable input, what is the average total cost of producing 10 units of output?
Assume the price elasticity of demand for heating oil is 0.7 in the long run also 0.2 in the short run.
A man is planning to retire in 20 years. Money can be deposited at 6% interest compounded monthly, and it is also estimated that the future general inflation rate will be 4% compounded annually. What amount of end-of month deposit must be made each m..
Money demand shocks will not affect the output level so long as the Fed pegs interest rates. True or false? Use an IS-LM diagram to explain your answer.
A person with diminishing marginal utility will demand insurance (i.e., will be willing to pay more to get insurance than (the negative of) the expected value of the loss lottery). Try to replicate our example of full insurance with an individual who..
How are prices determined under perfect competition? Think about a firm that you have done business with recently. What industry does this firm belong to? Is it monopolistic competition, oligopoly, monopoly, or perfect competition? Justify your class..
Lockheed Martin is increasing its booster thrust power in order to win more satellite launch contracts from European companies interested in new global communications markets. A piece of earth-based tracking equipment is expected to require an invest..
Assume that you have a budget of $30 to spend on milk and cereal only. What is the most you can purchase of cereal? What is the opportunity cost of three units of cereal? If you purchase 5 units of cereal (Qc=5), then how many of milk can you purchas..
All astute comments thus far. Some government projects also programs continue to give benefits for many yrs.
Read the opening case on Boeing 787s, and research for the updated information on the Boeing 787s. Identify the pros and cons of assembling a plane with many different parts and manufacturers as Boeing did with the 787. Assess whether Boeing’s approa..
Using your knowledge of after tax engineering economic analysis on a company's investment decisions and the information in the articles, relate how taxes can affect investment decisions. The Laffer curve basically relates how a 5% increase in a tax r..
Explain the quantity equation: M.V=P.V. What does the assumption of constant velocity imply? If inflation rise from 6 to 8% what happens to real and nominal interest rate? Explain the roles of monetary and fiscal policy in causing and ending Hyperinf..
An alternative to rent-control laws that would not reduce the quantity of housing supplied is:
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