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Suppose that the Live-Long-and-Prosper Health Insurance Company charges $5,000 annually for a family insurance policy. The company’s president suggests that the company raise the annual price to $6,000 to increase its profits.
Bob’s lawn-mowing service is a profit-maximizing firm operating in a perfectly competitive market. Bob mows lawns for $27 each. His total cost each day is $280, or which $30 is a fixed cost. He mows 10 lawns a day. What are Bob’s decision rules about..
Atlas Transportation is considering installing temperature logger in all its refrigerated trucks for monitoring temperatures during transit. If the systems will reduce insurance claims by $40,000 per year for 5 years how much should the company be wi..
In anticipation of a major hurricane hitting the Gulf Coast, the quantity gasoline of sales rise from 360 million gallons to 375 million gallons. Based on this information, what is the percent change in gasoline sales?
What is the difference between nominal and real? Is nominal the same thing as natural? Please give examples with GDP, exchange rates, and money supply.
AAA Personnel, Inc., discharges Barb, who feels the discharge is due to her religious beliefs. She decides to pursue an employment-discrimination claim and file suit against AAA. She could contact the Equal Employment Opportunity Commission
Whether businesses should be allowed to be involved in the politics and government issues? Do the businesses have the right to be involved or is it unfair for businesses to be involved given their potential economic power which create imbalances in t..
Constructive Eviction and the Implied Warranty of Habitability
What is the output of each firm if they collude to produce the monopoly output? What profit does each firm earn with such collusion.
When economists speak of "marginal," they mean. Managers undertake an investment only if. A manager of a clothing firm is deciding whether to add another factory in addition to one already in production. The manager would compare. If a firm's average..
Assume capital depreciates at 10 percent a year. Economy A has 1.000 units of capital while Economy B has 2,000 units of capital. Illustrate what must Gross Investments be in Each Economy to keep capital stocks Constant.
Rexall Industries is planning to expand sales of its line of drilling machines to the mid-west. We hoped one of our existing salespeople would be willing to take over the new territory. However, they have all turned it down. So, we’re going to have t..
You live in a world with two time periods. Your income is $100 in time period 1 and $150 in period 2. If the interest rate is 0.03 (3%), draw your inter temporal budget constraint. If you value current consumption 1.5 as much as future consumption at..
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