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The most you would be willing to pay for having a freshly washed car before going out on a date is $7. The smallest amount for which you would be willing to wash someone else’s car is $4. You are going out this evening and your car is dirty. How much economic surplus would you receive from washing it?
We say that the demand for labor is a derived demand because:
Two companies are deciding at what point to enter a market. The market lasts for four periods and companies simultaneously decide whether to enter in period 1, 2, 3, or 4, or not enter at all. Thus, the strategy set of a company is {1,2,3,4,do not en..
Last year, $100 million in outstanding bank loans to a developing nation’s government were not renewed, and the developing nation’s government paid off $50 million in maturing government bonds that had been held by foreign residents.
GM Company is considering opening a dealership in Germany, but is unsure if it can earn an 8% rate of return that is promised by an alternative investment (of similar risk). Identify and describe and three rate base misconceptions? Think of the “rate..
Snacks/beverages versus newspaper sales techniques and expand your discussion to include the benefits that a person gets from consuming other goods and services. Apply the marginal utility and diminishing marginal utility analysis concepts when posti..
We know that investment spending depends on real interest rates, yet the demand for money is dependant on nominal, not real, interest rates. Why should money demand be dependant on nominal rates?
Sharp rises in the cost of milk, grain, and fresh fruits and vegetables are hitting cafeterias across the country, forcing cash-strapped schools to raise prices or serve more economical dishes. How many servings of grapes can the school afford each d..
It takes a phlebotomist 10 minutes to complete a blood draw. The supplies for each draw cost $5 and the phlebotomist earn$25 per hour. the phlebotomy lab is designed to accommodate 24000 draws per year. its rent is 100,000 per year. what are the aver..
Graph the consumption function, with consumption spending on the vertical axis and disposable income on the horizontal axis. If the consumption function is a straight line, what is its slope?
Why may the effective patent life of a drug be shorter than the legal life. Explain why may the effective patent life of a drug be longer than the legal life.
Demand for microprocessors is given by P=35 - 5Q where Qis quantity of microchips in millions. The typical firm’s total cost of producing a chip is Ci=5qi where qi is the output of firm i. Suppose that one company acquires all the suppliers in the in..
Illustrate what is the value of goods and services purchased by the government of Numidia.
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