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Consider a firm in a perfectly competitive market with total costs given by
TC = Q^3 – 15Q^2 + 100Q + 30
a. What is this firm’s marginal cost function? Over what range of output are the firm’s marginal costs decreasing? Increasing?
The relationship between marginal revenue and elasticity is when demand is elastic marginal revenue is positive and when demand is inelastic marginal revenue is negative
A more serious problem with input-based pay systems (e.g., a wage her hour), relative to an output--based system, is:
Explain why would elasticity of demand be important to you in determining the products on which the taxes should be levied.
The Solow Growth Model. In 2010, Japan was a large open economy with perfect capital mobility that was at its steady state.
Mexico also which being free to pollute gives industries in Mexico an economic advantage over those in the U.S. also Canada.
A small dam was constructed for $2,000,000. The annual maintenance cost is $15,000. If interest is 5%, compute the capitalized cost of the dam, including maintenance.
q.the manager of the aerospace division of general aeronautics has estimated the price it can charge for providing
Suppose that Charles, an economist from an AM talk radio program, and Dina, an economist from a university in Massachusetts, are arguing over government intervention. The following dialogue shows an excerpt from their debate:
Provide an example of income effect and substitution effect in regards to supply of labour. Illustrate what is opportunity cost of work in this case
One month ago, they added five workers, and productivity also increased by 50,000 pages per day. Copiers cost about twice as much as workers. Would you recommend they hire another employee or buy another copier?
Draw an Edgeworth box with indifference curves through this endowment. At what combinations of X and Y are both better off (i.e., are Pareto Improving)? At what combinations of X and Y are there no more gains from trade (i.e., are Pareto Efficient)?
You can either imagine which your organization has received a complaint from a customer or client about a product
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