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1. Indicate whether each of the following involves an upward or downward shift in the long run average cost curve or instead, involves a leftward or rightward movement along a given curve. Also indicate whether each will have an increasing, decreasing, or uncertain effect on the level of average cost: A) a rise in wage rates; B) a decline in output; C) an energy -saving technical change; D) a fall in the interest rates; E) an increase in learning experience
2. St. Thomas Winery plans to reopen a new production facility in the Napa valley of California.
Based on information provided by the accounting department, the company estimates fixed costs of $250,000 per year and average variable costs of
AVC = $10+ $0.01Q
Where AVC is average variable cost (in dollars) and Q is output measured in cases of output per year.
Estimate total cost and average total cost for the coming year at a projected volume of 4000 cases.
This exercise presents a simple example to elucidate how exchange-rate conversions can produce misleading results and how the PPP methodology works.
In order to create more revenues for government, taxes should be implemented on either wealthy individuals or on the luxury items they buy (i.e. jewelry, yachts, stocks and bonds, expensive cars) because they can afford them the most.
q1. explain how one of the components of the gdp would help you to predict the amount of inventory to keep in stock if
Aerotron Electronics is considering purchasing a water filtration system to assist in circuit board manufacturing. The system costs $42,000. It has an expected life of 7 years at which time its salvage value will be $8,500. Operating and maintenance ..
Describe in your own words the categories of Web-enabled customer service as discussed in the assigned readings of the text. What makes the most sense for a business like yours (if you are currently employed)?
What fraction x of your money should you invest in risky asset in order to maximize your utility. What happens if A is large.
One of the most striking aspects of cities in the former Soviet Union is the poor condition of public places. Streets, parks, libraries, museums, concert halls, and public gathering places of every description are all in very poor condition, revealin..
An individual must decide whether or not to pursue a business opportunity. If he does pursue the opportunity, then he will get a $20 profit if the business is successful and a $10 loss if the business fails. Apply the maximin and minimax regret crite..
A study finds that leaf blowers make too much noise, so the government imposes a $10 tax on the sale of every unit to correct for the social cost of the noise pollution. Describe the impact of the tax on the number of leaf blowers sold. What is the s..
When an investment is sunk and durable, why is it a mistake to assess the investment only on the basis of economic profits in the first year? What is a better criterion? Why?
What would you expect to happen to the demand for credit cards by students? What would you expect to happen to the quantity of credit cards issued to students? To the willingness of students to incur debt at the much higher rates of interest charged ..
Name the factors not counted in GDP that, in your view, most affect human welfare or happiness. How do you imagine that modifying to account for these factors would raise or lower current U.S. GDP relative to earlier times or other countries? (Be spe..
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