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George Kennan’s Long Telegram/Mr. X article. What is the post-war Soviet outlook? What are the sources of this outlook? What are the practical policies that emerge out of this outlook? What should the US do in light of Soviet policy/outlook?
In a perfectly competitive factor market, a firm finds that the marginal factor cost of a factor of production is: The price paid by a firm for a factor of production in a perfectly competitive market:
Suppose that the inverse demand curve is: p(q) = a − bq, and the cost function is: c(q) = cq. (a) Draw a graph showing the demand curve and marginal cost curve, with dollars on the y-axis and quantity on the x-axis. How much consumer surplus is gener..
An entrepreneur seeks $4 million from a venture capitalist. They agree that the entrepreneur’s venture is currently worth $12 million and that, when the company goes public in an IPO three years hence, it will have an expected market capitalization o..
The first audit of the books of Bruce Gingrich Company was made for the year ended December 31, 2015. At the beginning of 2013, the company purchased a machine for $494,300 (salvage value of $52,600) that had a useful life of 6 years. The bookkeeper ..
Firm manufactures bicycle component upgrade kits. Kits have a short-run average variable cost of $48 and are sold for $66 each. What is breakeven level of daily output for firm.
The normal supply and demand models take the supply and demand of a particular good and show that the equilibrium price is where the two curves intersect. How do we reconcile both of these observations?
The stock market is booming and everyone is making money with their stock portfolios. At the same time, all business taxes have been increased by 20% as the government tries to reduce their deficit. Using the required underlying graphs, illustrate th..
You produce goods in a competitive market. You discover that the marginal cost of the last good you produced is the same as the market price for the good. You should:
At its current level of production, a profit-maximizing firm in a competitive market receives $12.50 for each unit it produces and faces an average total cost of $10. At the market price of $12.50 per unit, the firm's marginal cost curve crosses the ..
Assume that the market basket consists of 150 container of yogurt 300 cups of coffee and 200 cookies in 2013 but in 2014 in consists of 200 containers of yogurt 150 cups of coffee and 150 cookies
The Financial Advisor is a weekly column in the local newspaper. "I need a new car that I will keep for 5 years. I have three options. I can (A) pay $19,999 now, (B) make monthly payments for a 6% 5-year loan with 0% down, or (C) make lease payments ..
Discuss situations involving binding price ceiling and price floor. You can pick your examples from housing industry, health care industry, or from any other industry. Arrange the following four kinds of market on a continuum where one end will have ..
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