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Two restaurants are on the same block. One has been opened for 10 years and its a thriving business. The other one has been open for only a year. They both want to expand. When the two owners to to the local bank looking for a loan, which one is likely to get a lower interest rate? Explain in terms of the risk-return principle.
The currency of Iceland is called the Krona, in July, 2007 the exchange rate was roughly 60 krona to a dollar. In July 2011, the exchange rate was roughly 120 krona to a dollar.
Over this period, would you expect exports from the US to Iceland to get cheaper or more expensive in Iceland?
Would you expect living standards in Iceland to rise or fall?
Is the krona appreciating or depreciating against the dollar?
You and your roommate have a stack of dirty dishes in the sink. Either of you would wash the dishes if the decision were up to you; however, neither will do it in the expectation that the other will deal with the mess. Explain how this examples illus..
Let's assume you've already completed the input optimization and found your company's cost function as follows: C(Y)=Y^2 + 3Y. Write down the firm's profit function. Suppose that P=$9. Find Y* and show that at this level of output, marginal revenue i..
With the growth of the internet, there is a large number of online retailers as well as buyers in the online retail market. Why, given the growth of the Internet, would you expect to find that different firms would charge very similar prices for the ..
Which of the following payment terms should a professional athlete prefer in a “ten million dollar” five-year contract if the athlete wants to obtain the greatest present value of income?
Which of the following pricing policies compensate customers if the firm fails to provide the best price in the market?
the technology is now developing so that road use can be priced by computer. A computer in the surface of the road picks up a signal from your can and automatically charges you for the use of the road. Explain how would this affect bottlenecks and..
However, the university administration will charge the college $10,000 per student for the first 100 students enrolled each year for administrative costs and its share of the tuition payments.
What does the branch of microeconomics deal with in simple terms. Please be specific
Why are coal miners in China paid higher than factory workers even though they have received more or less the same level of education and training? Why are workers with good looks paid higher in some jobs, but not in others?
Further suppose that the typical worker earns $210 in period 1 ad $330 in period 2; and that the interest rate is 10%. Assume the typical worker wishes to maximise their lifetime satisfaction. Is this consumer a saver or borrower? Explain.
Discuss examples of externalities, including 1) an explanation of why or how they demonstrate the concept of externalities, and 2) public goods, again including an explanation of why or how they demonstrate the concept of public goods.
In what type of merger wave is the U.S. economy currently situated? For what reasons are companies merging? What are the risks and benefits of these types of mergers?
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