Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Increasing returns and imperfect competition: Suppose a new piece of computer software — say a word processor with perfect speech recognition — can be created for a onetime cost of $100 million. Suppose that once it’s created, copies of the software can be distributed at a cost of $1 each.
(a) If Y denotes the number of copies of the computer program produced and X denotes the amount spent on production, what is the production function; that is, the relation between Y and X?
(b) M ake a graph of this production function. Does it exhibit increasing returns? Why or why not?
(c) Suppose the ?rm charges a price equal to marginal cost ($1) and sells a million copies of the software. What are its pro?ts?
(d) Suppose the ?rm charges a price of $20. How many copies does it have to sell in order to break even? What if the price is $100 per copy?
(e) Why does the scale of the market — the number of copies the ?rm could sell — matter?
According to our discussion of Uber in class, which of the following best describes the evidence of the impact of the surge-pricing strategy?
For each of the following events, describe the effects on the Canadian economy assuming that it is originally in long run equilibrium. For each, explain the short and long run effects in the context of an aggregate supply and aggregate demand diagram..
Consider an initial stock of 5000 tons of high grade ore. The demand function for this ore is P = 2400 – 0.2Q (Q is measured in tons/year), and the cost of extraction is constant at c = $200/ton. The discount rate is r = 0.10. Recalculate Q0, Q1, p0,..
In the aftermath of 2012’s Hurricane Sandy, there was a lack of gasoline for consumers to purchase in New York and New Jersey. Lines were common, as there was significant demand for whatever gas was available. Sellers could have found ways to deliver..
Assume that the interest rate on a federally insured deposit declines from 15 percent per annum to 10 percent. If an individual holding a U.S. Treasury bill worth $2,500 plans to sell it after this drop in interest rate, he would realize (approximate..
Explain what determines the level of income, employment, output and prices in our economy. Do you think current monetary and fiscal policy is working to help the U.S. economy achieve the three economic goals of full employment, economic growth, and s..
Explain and illustrate graphically the effect of the following on the monetary base and the level of reserves. The Fed lends the Bank of America additional $20 million but depositors withdraw $5million. Central bank purchases $30 million of governmen..
Does either player have a dominant approach Does either have a dominated approach. Explain.
In your opinion, are the resources you devote to your education a form of consumption or a form of investment.
Discuss which key concepts and topics in this course have made you a stronger candidate to enter the business world.
Your utility function is U = ln(2C) where C is the amount of consumption you have in any given period. Your income is $40,000 per year and you have no savings. There is a 2% chance that you will be involved in a catastrophic accident that will cost y..
Phil the Pharmacist currently is working for the Gregory Pharmacy Company earning $40,000 in salary per year. He works 6 days per week and travels one hour in each direction to and from work each day. Phil values his own time at $9.00 per hour. For t..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd