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Ten firms compete in a market to sell product X. The total sales of all firms selling the product are $2,000,000. Ranking the firms’ sales from highest to lowest, we find the top four firms’ sales to be $260,000, $220,000, $150,000, and $130,000, respectively. Calculate the four-firm concentration ratio in the market for product X.
The human resource manager of the XYZ Company makes the following claim: “Our workers make an average of $500 per week. We produce $6000 worth of output each week using only 10 workers. That averages out to $600 per worker per week. We should therefo..
For the past few years, Cuban baseball players have been leaving their country illegally to play professional baseball in the United States. (Ex. Yasiel Puig, Rusney Castillo, Jose Abreu). What laws in Cuba are restricting them from leaving legally? ..
q. college enrolment increased at the same time that average tuition rose dramatically. does this contradict the law of
In late 2006 and early 2007, orange crops in Florida were smaller than expected, and the crop in California was put in a deep freeze by an Arctic cold front.
Now suppose that the interest rate falls to 50 percent, and the household decide not to borrow or lend at all. Is the household better off or worse off with the higher interest rate?
Why is depreciation of capital good a cost of society. In illustrate what ways does a person's health depreciate. Why might older people's health care expenditures increase in Grossman model even though their desired health stocks may be lower.
Consider a diagram containing isocost curves for the production of a given level of a final commodity in the household production model. Assume that purchased inputs are represented on the vertical axis while the time input is measured on the horizon..
Merk is a biotech division of Bayer Pharmaceuticals. In its eight years of existence, Merk has had only one drug make it into clinical trials.
How is it that higher tax rate can increase tax revenue in some cases, but a higher tax rate can decrease tax revenue in other cases? Relate this to the price elasticity of demand. (Excise Taxes)
One of the walrassian assumptions of the competitive (Walrasian) mechanism is all agents are endowed with "perfect information". What does it mean and what are the distinguishing characteristics? What other assumptions of the competitive mechanism su..
Why do proponents of active policy recommend government intervention to close an expansionary gap. Some economists argue that only unanticipated increases in the money.
A machine that produces a certain piece must be turned off by the operator after each piece is completed. The machine "coasts" for 15 seconds after it is turned off, thus preventing the operator from removing the piece quickly before producing the ne..
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