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An apple farmer must decide how many apples to harvest for the U.S. market. He knows that there is a one-half probability that the world price will be $6, a one-quarter probabaility that it will be $8, and a one-quarter probability that it will be $10 per bushel. His cost function is C (Q) = 0..1 Q^2. How many bushels of apples should the farmer bring to market to maximize profits?
After getting her first job, a college graduate wants to begin saving money so she can pay cash for a new car. She wants to save enough each month to have $24,000 at the end of 5 years, and her savings account pays 6% interest, compounded monthly. Ho..
Suppose the Congress decides to reduce transfer payments but to increase government purchases of goods and services by an equal amount. That is it undertakes a change in fiscal policy such that ΔG = - ΔTR. Would you expect equilibrium income to rise ..
The US stock market has set records for high values in recent months. This means the overall wealth of the populace has increased. What effect does this have on the following?
A third brother, Rex Carr, owns a junk yard. Rex can use one of two methods to destroy cars. The first involves purchasing a hydraulic car smasher that costs $200 a year to own and then spending $1 for every car smashed into oblivion; Write down the ..
A large food-processing corporation is considering using laser technology to speed up and eliminate waste in the potato-peeling process. To implement the system, the company anticipates needing $3.5 million to purchase the industrial-strength lasers.
Estimate the approximate after-tax rate of return (ROR) for a project that has a before-tax ROR of 24%. Assume the company is in the 35% tax bracket and it uses MACRS depreciation for an asset that has a $27,000 salvage value.
A monopsonist faces a labor supply curve given by LS = −300 + 0.01w , where w is the annual salary. What is the lowest salary the firm can pay yet still induce one worker to want to work for the firm? What is lowest salary the firm must pay to induce..
Choose a fast food restaurant or chain and talked about the costs that the restaurant may have (1 page please), not as company. Just considering the restaurant workplace, include these three things:
Despite its political popularity, the overwhelming majority of economists are not in favor of a Constitutional amendment that requires the federal government’s budget to be balanced every year. Utilizing the concepts from this weeks' readings, explai..
Concert tickets to see Adele have increased from 100$ to 150$.
Given the importance of the M-Pesa to the rising economic growth of the Kenyan economy, why would Kenyan government take 10% tax off the employees pay check?
For utility maximization, consumers will purchase different consumption bundles until their marginal utility per dollar are equal. So, when the marginal utility of beef is 10 at price of $5 per lb and the marginal utility of chicken is 8 at price of ..
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