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The behavioral economist Robert Frank speaks of the bounded nature of rationality in his 2008 interview (Challenge 2008) and discusses the axiom of the independence of irrelevant alternatives in rational choice theory. Using the examples he uses, discuss this topic in your own words.
Summarize the article "The war against the poor instead of programs to end poverty" by Herbert J.Gans in 400 words by following these steps: How the economy, the government and the political climate have participated in the war against the poor? Writ..
Wheat can only be sold at a central market place M. All producers that do not produce it at M need to haul it there in 11order to sell it and will incur transportation cost. People are willing to pay $222 per ton of wheat; its marginal production cos..
Consider the following cost relationships for a single-product firm: C(q) = 50 + 0.5q for q ≤ 7 C(q) = 7q for q > 7. Derive average and marginal cost for all integer outputs (from 1 to 7) less than or equal to 7. What are the average and marginal cos..
Suppose the marginal cost of production for a company is $6 at its current production levels. Suppose the price elasticity of demand is constant at -2 between prices of $10 to $15, if current prices are $10, is the company pricing at the correct opti..
Maxwell Software, Inc., has the following mutually exclusive projects. Year Project A Project B 0 –$24,000 –$27,000 1 14,000 15,000 2 10,500 11,500 3 3,300 10,500 a-1. Calculate the payback period for each project. What is the NPV for each project if..
Revnol, a manufacturer of cosmetics, prices its popular pink lipstick at $8. On the basis of test-marketing, Revnol believes that women between the ages of 18 and 20 have an own-price elasticity of −1.5 and that 60 percent of them are likely to purch..
What factors in socio-cultural segment can have significant impact on U.S. restaurant industry? How does each of these factors shape the growth and changes of the industry? What are the future trend of each factor and the resulting changes of the ind..
Economic Projections you have just been appointed the new Economic Advisor to the U.S. Government and have been asked to develop an economic series of projections for the U.S. domestic economy for the next year. Outline your new forecast based on cur..
The recent merger of US Air and American Airlines received both national and local attention. The US Department of Justice contested the merger on the basis it would produce harmful monopoly-like behavior in the airline industry. Develop an argument ..
Consider an overlapping-generations model with inside and outside money, where the rate of return on inside money is x, while the rate of return on outside money is 1 z. What is the effect on the deposit-to-currency ratio, nominal money stock M1 and ..
Describe Wheatley theories and perspectives of leadership and organization. How do Wheatley's ideas support the new business realities?
Meg's pension plan is an annuity with a guaranteed return of 4% per year (compounded quarterly). She would like to retire with a pension of $40,000 per quarter for 25 years. If she works 37 years before retiring, how much money must she and her emplo..
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