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Current average daily sales of hats are 60. The current price is $9.24 per hat. A store manager notices that a rival store is charging $8.50 per hat. Use the mid-point method to calculate the price elasticity of demand.
A monopoly firm faces an inverse demand curve of P = 98 – Q and has a constant marginal (and average) cost curve of 49. If the firm can perfectly price discriminate, what are its profits; what are the consumer surplus, producer surplus and dead weigh..
Using the power operations on a typical calculator, find the period interest rate to three digits after the decimal point in percentage format that results in the F/P factor being 2.85 after 16 periods.
The FOC and local SOC for the firm's optimization problem can be used to prove the law of supply, meaning exactly: if the firm supplies a positive quantity at the current market price, then at a higher price it will supply a larger quantity.
What is the "current macroeconomic situation" in the U.S. (e.g. is the U.S. economy currently concerned about unemployment, inflation, recession, etc.)? What fiscal policies and monetary policies would be appropriate at this time?
Illustrate what is the "incubator effect" that Taiwan's government hoped would emerge in its EPZs.
Illustrate fiscal policy action might increase investment and speed economic growth.
We normally think of currency and banking risks as being something confined to third-world or developing countries. But events in the past few years such as the Euro crisis or the financial crisis in the United States have shown that not even the wea..
The inverse demand function for grapefruit is defined by the equation p = 317 − 6q, where q is the number of units sold. The inverse supply function is defined by p = 5 + 6q. A tax of $48 is imposed on suppliers for each unit of grapefruit that they ..
The effort required to maintain a scanning electron microscope is known to increase by a ?xed percentage each year. A hightech equipment maintenance company has offered it services for a fee of $25,000 for the first year (i.e., end of year 1) with in..
NY state will soon implement a $15/hour minimum wage for fast food workers. What is your prediction of the short run effects of this policy? What is your prediction of the long run effects?
As vice president of sales for a rapidly growing company, you are grappling with the question of expanding the size of your direct sales force.
Consider a two-period economy with a single commodity (say leisure): x_1 is the consumption of leisure in period 1, and x_2 is the consumption of leisure in period 2. When Peter evaluates consumption streams, he cares only about the best time in his ..
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