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In running for the party's nomination, what are the advantages and disadvantages of a candidate who has a stronger ideological record? For example, in the 2012 GOP nomination race, what advantages did Rick Santorum (the stronger socially conservative candidate) have as compared to Mitt Romney
Recall that the Lerner formula or condition states that (p-MC)/p = 1/E. Write down the profit maximization conditions for pj j=X,Y. Can you write down the Lerner conditions for the two products? Why is the formula different in this case from the u..
An economist has predicted that for the next 5 years inflation will be 8%, and then there will be 5 years at 6% inflation rate. This is equivalent to what average price change per year for the entire 10-year period
It is estimated that .44 percent of the callers to the Customer Service department of Dell, Inc. will receive a busy signal. What is the probability that of today's 1,100 callers at least 5 received a busy signal Use the poisson approximation to t..
An investor bought 100 shares of Omega common stock for $9000. He held the stock for 9 years. For the first 4 years he received annual end-of-year dividends of $800. For the next 4 years he received annual dividends of $400.
A medium sized city is considering offering exclusive rights to CableNet, a cable television carrier. The demand function for cable in this city is: P= 28- 0.0008Q; The resulting marginal revenue function is: MR = 28 - .0016Q ; Cablenet's marginal co..
consider the maximization problem u(c,l) subject to pc + wl = wT + Y, where c is consumption, l is leisure time, T is total time endowment, and Y is non-wage income. prove that if leisure is an inferior good then the labor supply function is upwar..
adding a turning lane to a busy intersection will cost 2 million dollars, but it is estimated that it will save motorists a total of 300000 dollars a year for the next 10 years. a government agency wants to know if the annual benefits outweight ..
A firm produces output according to a production function Q=F(K,L)=min {2K,4L} a. how much output is produced when K=2 and L=3 b. if the wage rate is $30 perhour and the rental rate on capital is $10 per hour, what is the cost-minimizing input mix ..
Why are the marginal revenue numbers less than the price in the table on page 22-5? You can use either the original or the new MR numbers to answer this question. Note that this is different from pure competition, where P = MR. In other words
Remembering that the change in the capital stock is investment less depreciation, use a calculator or a computer spreadsheet to show how the capital stock per worker will evolve over time in both countries. calculate income per worker and consumpti..
What are the effects of the FED increase of interest rates on the bonds market?
Sean Bell invested $10,000 on a blue chip stock five years ago and paid a commission of $90. He sold it today for $14,192.20 and paid the same commission, exactly 5 years and 4 months since the stock was bought.
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