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What do you make of the razor wars, first between Gillette and Schick, and now with online competitors? Does Gillette face a serious threat from competitive inroads? Explain.
Suppose that Taher's pizza business operates under competitive conditions and that his short-run production function is q=20^E. How much labor does he employ if the price of each pizza is p = $12 and the hourly wage is w0 = $6? [Hint: In this case, i..
A physical therapy clinic faces a demand equation of Q = 200 - 1.5 * P, where Q is sessions per month and P is the price per session. The clinic currently charges $80. If the clinic lowered its price to $70, what would happen to volume and revenue?
Think of an externality in your community. Explain what type of externality it is. How can it be resolved (through the market and/or through government policies)?"
How much principal will be paid (subtracted from the balance) and interest will be paid in each payment on a $10,000 loan with a 6 year term at 5% yearly interest? Assume yearly payments. Build a table showing year, interest due, total owed, payment,..
Consider our simple model of a system of factory cities. Why is there more than one city? Does anyone in the region produce both shirts and bread? Why? Suppose transportation technology improves. What will happen to the system of cities, holding al..
Three basic facts about men and women in the labor market are these: 1. As a group, women now get just as much schooling as men do (actually, a little more). 2. Upon graduating from college, women receive salary offers that are the same as men’s offe..
Suppose a union that represents some but not all of the employees in an industry is considering a strong push for increased pay for their members during the upcoming contract negotiations. However, they are concerned about the possibility that the co..
If the scatter plot between a dependent time series variable and an independent time series variable is curvilinear (curves upward over the data series) what should the forecaster investigate to improve the performance of a linear regression model fo..
The price elasticity for rice is estimated to be -0.4 and the income elasticity is 0.8. At a price of $0.40 per pound and a per capita income of $20,000, the demand for rice is 50 million tons per year. If per capita income increases to $20,500, what..
If inflation turns out to be 1% over the life of the loan, what is the real interest rate? Who gains from unexpectedly low inflation, Loretta or Ted?
A justification for job training programs is that they improve worker productivity. Suppose that you are asked to evaluate whether more job training makes workers more productive. However, rather than having data on individual workers, you have acces..
Which of the following is true concerning production in a free market economy? Which of the following represents how private property rights act as incentives in a free market economy?
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