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Suppose that the price per unit of input A is 8 euros and the price per unit of input B is 5 euros. What is the minimum cost of producing 100 units of output Y for the firm if the firm’s production function is Y = 4A + B/5
Consider the market for electricity. Suppose demand (in megawatt hours) is given by Q = 50 − P and that the marginal private cost of generating electricity is $10 per megawatt hour (P is in the same units). Suppose further that smoke is generated in ..
Which of the following would shift out (or shift down or shift right) the supply curve for fluorescent light bulbs?
Suppose that the Federal Minimum wage was recently increased from $7.25/hour to $9.00/hour. What impact do you think that will have on income inequality in the United States? Will those at the bottom of the economic ladder start catching up to those ..
An important reason for the economic regulation of industry is the presence of a natural monopoly. A. Briefly explain what is meant by a natural monopoly. B. How is a natural monopoly efficient in one way but inefficient in another? C. Discuss two wa..
q. 1. an investor buys a property for 1 million with 40 of the purchase price attributable to the land and the balance
q1. suppose that for a particular economy and period investment was equal to 200 government expenditure was equal to
Excise tax is collected from fishermen, who protest that y alone are bearing burden of this policy. Why might this protest be misguided.
Suppose that you have won a wrongful injury lawsuit and have been awarded $5 million dollars. However, the $5 million is going to come in two payments. The first payment is $3 million and will be paid in exactly one year. The remaining $2 million is ..
Which of the following phenomena can a nation expect when it opens (more widely) to international trade?
To determine how well an investment is doing, it is important to take into account its return and risk. Rational investors seek to obtain the highest amount of return from an investment with the least amount of risk. What are the similarities and dif..
Illustrate what are the limitation of the equilibrium level of national income determined in Keynesian cross model.
Consider a series of end-of-period CFs spanning 2046-2053, which increase at a 1% rate each period. The amount of the first CF in the series is $92. The interest rate is 3%. What is the equivalent value of this series at the beginning of 2046?
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