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Consider price elasticity of demand for cigarettes. What are some other products that are similarly price elastic in their demand and what factors influence their elasticity?
A farmer uses a piece of land with the following accounting costs to grow a crop worth $1800. If a normal rate of return is $100 on such an investment, what will the value o
An increase in the market price of men's haircuts, from $15per haircut to $25 per haircut, initially causes a local barbershop to have its employees work over time to increase
How does GDP fare as a measure of an economy's growth & development? Do you think that 'GDP' is, by itself, a comprehensive and representative measure of an economy's status a
Stackelberg and Limit Pricing. Consider the Limit pricing and Stackelberg models done in class in which the incumbent chooses capacity first and entrant then chooses whether t
Suppose that the output can be sold for $10 per unit. Further assume that the firm can obtain as much of the variable input (L) as it needs at $20 per unit. Determine the marg
A firm makes and sells a computer for $1000. The variable cost to produce a computer, for the range of production of the firm, is $3000 per unit. The total fixed costs per yea
Danny’s Delights is a wholesale bakery. Danny makes a variety of baked goods which he sells to restaurants and grocery stores. His best-selling item is a peanut butter cookie.
A computer in surface of road picks up a signal from your car and automatically charges you for use of road. Explain how could this technological change contribute to ending b
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