Reference no: EM131224527
Microeconomics ASSIGNMENT
Directions: Unless otherwise stated, answer in complete sentences, and be sure to use correct English, spelling and grammar. Sources must be cited in APA format. Your response should be four (4) double-spaced pages; refer to the "Assignment Format" page located on the Course Home page for specific format requirements.
Part A
Imagine that it is the year 2199. Technology has progressed at an incredible pace. The latest discovery is the plutonium engine, which is capable of converting plutonium, a by-product of nuclear fission, into fuel to power the nuclear reactors in our new form of transportation, the rocket-car. However, because the firm that invented the engine, the Futures Unlimited Corporation, already has a government license to control and distribute the quantity of this certain isotope of plutonium on the market, it is now conceivably in charge of a monopoly on plutonium-fueled transportation.
1. Describe the economic outcome of this single-price monopoly in terms of profit. Provide one supporting fact to support your response.
2. Describe one way that the Futures Unlimited Corporation makes output and price decisions.
Part B
1. Would consumers benefit more from a tariff or a quota on imports? Provide one supporting fact to support your response.
2. Consider the following weekly production possibilities of gloves and hats in Panama and Russia:
|
Russia
|
Panama
|
Gloves
|
20
|
180
|
Hats
|
80
|
90
|
a. What is each country's opportunity cost of producing gloves and hats?
b. If the countries could, should they trade? Provide one supporting fact to support your position.
How far is too far when it comes to protecting the blue line
: Officer trust is one of the basic tenants of law enforcement and it is often referred to as the "thin blue line". Do you believe that this line exists and, if so, do you agree with the concept? How far is too far when it comes to protecting the bl..
|
Prepare oral presentation appropriate for student audience
: The program chair for the campus business club has asked you to present a talk to the group about consumer credit. He saw a news- paper article saying that only 10 percent of Americans know their credit scores. Many consumers, including students, hav..
|
Calculate her total benefit-total cost
: (a) i) Calculate her total benefit (TB), total cost (TC) and net benefits (NB) at each level of her hamburger consumption. ii) Determine her optimal hamburger consumption and show if her optimal amount of hamburgers maximizes her NB.
|
Examples of inelastic products
: When looking at a business, you will find that we are focused on how much consumers are willing to spend on each product. We do this through the use of elasticity. What are examples of inelastic products that you have purchased? Please make sure t..
|
Describe way that the unlimited corporation makes output
: Describe the economic outcome of this single-price monopoly in terms of profit. Provide one supporting fact to support your response. Describe one way that the Futures Unlimited Corporation makes output and price decisions.
|
Which is not an essence of homeland security
: Only the following ranked higher on the fear index than terrorism victimization: The most significant terrorist attack in the U.S. prior to the 9/11 attacks was the:
|
Determining the change in total cost
: Suppose your company produces one product at the output level (75 units) that minimizes its average cost. At the current level of 75 units, your company's average cost is equal to $750. What would be this company's change in total cost if, instead..
|
Constrained maximization problem
: (a) Set up the Lagrangian equation for this constrained maximization problem. (b) What are the 3 first order conditions (FOC) of optimization from the Lagrangian? (c) Find Luke's optimal consumption bundle of strawberries and turnips.
|
Derive an equation for the budget constraint
: Suppose that Tiffany has an income of $20 per week and she spends it on frozen pizza (P) and beer (B).The price of a bottle of beer (PB) is $1 and the price of frozen pizza (Pp) is $5 per pizza. (a) Derive an equation for the budget constraint.
|