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What are we saying when we describe a market as being "in equilibrium"? Changes in market conditions will always trigger one of two disequilibrium conditions. Describe one of them, and tell how the market would react to this disequilibrium.
Should the government build more shelters for the homeless? Where will it get the resources to do so? What are some of the opportunity costs?
This production function does not satisfy the definition of rising returns to scale, constant returns to scale, or decreasing returns to scale. How can this be.
Assume that the Demand curve is given as Q=100-4P and the supply curve as P=10+4Q. What would be the price and quantity with perfectly competitive markets? What will happen to price and quantity if the government imposes a specific tax of $1 per unit..
Evaluate Rusal's prediction by using the demand and supply equations to make a prediction about the movement of world aluminum price.
A computer costs $9500 and its salvage value in 5 years is negligible. What is the book value after 3 years? If the machine is sold for $1500 in Year 5, how much gain or recaptured depreciation is there? Assume:
How much are you willing to invest today to receive $150 a year for seven years and an additional $1,200 at the end of the seventh year? Assume this investment is low risk, that is, no riskier than putting money in a bank earning 2%.
You are an efficiency expert hired by a manufacturing firm that uses K and E as inputs. The production function for a competitive firm is Q = K1/2 E1/2. The firm can hire labor at a wage of $15 per hour and rent capital at a rate of $60 per unit. Com..
Research Bank of America's performance and risk exposures in the market since 2008. What is its biggest strength? What is its biggest challenge? How does the B of A manage its risks and survive its crisis period?
At this level of pollution, what is the marginal cost of pollution control.
Joe subscribes to an Internet provider that charges $2 per hour. He has $100 per month to spend and is at equilibrium by buying 10 hours of Internet access and $80 worth of other goods. Draw the indifference curve and budget line. If the company swit..
Two firms compete in an undifferentiated Bertrand market. Suppose that the firms face a demand curve given by P = 60 – Q and both firms have constant marginal cost of 40. What is the market clearing Bertrand price and quantity?
Let's examine the demand for videocassette recorders (VCRs), which can be affected by their own price as well as the income of consumers and the price of a competing good, the DVD player.
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