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This unit has talked largely about economic os scale at the plant or unit level. What do you see as the difference between the unit levels economies of scale and the firm multiple plants, movie theatres, restaurants, etc, Is there a clear distinction between economies or diseconomies at the unit level and the firm level?
An alternative requires $30203 to be paid over the course of year 1, $75000 over year 2, and $40000 over year 3. All values are in constant dollars. Using the tables in the chapter, compute the NPV of this alternative.
Carefully explain the difference between the marginal rate of substitution and the marginal rate of transformation. Be sure to explain the economic meaning of each of these terms. What value does each of them take? (Answer should be in terms of margi..
When inflation expectations changed during the 1967-1971 period, this change led to
What are the Fed's tools of monetary control? Which one is the primary tool? How is it implemented? Which tool does it NOT like use? why? Which tool acts as a signal of changes in MP? How did it stabilize markets in the 2009 crisis? Did it do a good ..
Oceana is small country. Using the open-economy macro model, trace the effects of the following actions on savings and investment in Oceania and Oceania’s trade balance. Make sure you explain the transmission mechanism of these effects with graphs.
Do you think the price elasticity of demand for Ford sport-utility vehicles (SUVs) will increase, decrease, or remain the same when each of the following events occurs? Explain your answer.
The data in the table below are the results of a random sample of recent home sales in your neighborhood that your boss has asked you to use to estimate the relationship between the selling price of the house and the number of square feet in it.
Felix runs a surfing school on the North Shore of Oahu. He has two inputs: surfboards, which he rents from a local shop for $10 per day, and surfing instructors, whom he hires for $40 per day. Felix could lower his costs without reducing his output i..
Two investors have each deposited $100 million in a bank. The bank has invested these deposits in a long-term project. If the bank is forced to liquidate the investment before the project matures, a total of $160 million can be recovered. How many pr..
Describe the relationship between costs and values in a society affected by externalities. Discuss the options that people and governments have to take account for their actions in these markets. Include comments regarding equilibrium and welfare dyn..
Consider a positive AD shock hitting the economy. Draw an AS/AD diagram and show both the short-run and long-run effects of the shock. And then, explain step by step the adjustment process after the shock, i.e. both the short run deviation from LRAS ..
A firm operating in a perfectly competitive industry is producing a daily output which supports total revenue equal to $5,000. That output is its profit-maximizing output. The firms average total cost is $8, its marginal cost is $10, and its average ..
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