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Suppose the government institutes a tax on soft drinks. Assume that short-run and long-run demand curves are the same, while the long-run supply curve is more elastic than the short- run supply curve. Compare the tax incidence in the short run to the long run.
How much will total output increase in terms of percent? What happens to the rental price of capital? What happens to the real wage?
Your company sells expensive, branded fountain pens. There are 100,000 people aware of your pens. Each of these 100,000 peoples has his or her own willingness to pay for your pens. This willingness to pay numbers are uniformly distributed between $0 ..
You graduate from UAlbany and receive a job offer that includes a "retention" or "stay" bonus. At the end of 3 years the employer will pay you $50,000 to offset your tuition. a. What is the value of this assuming you use 3% to discount the future? b...
Electrotech, a maker of household smoke detectors, buys resistors for its smoke alarms for $.15 each. The resistor manufacturer marks-up the resistors from $.10. Does the resistor manufacturer’s mark-up necessarily represent profit?
You have been chosen to create an e-commerce program to the board of directors. Present your argument on why senior management should buy into your e-commerce program.
Cattletown steakhouse is a restaurant known for its steak meal and hamburger basket. Draw a graph showing a production possibility frontier exhibiting increasing opportunity costs.
Determine the returns to scale, that is, briefly show whether the following productions exhibit DRS, CRS or IRS.
Assume you have 4000 in a savings account at the beginning of the year price level is 100 the account pays 7% interest annually. if the price level is equal to 115 at the end of the year, the real value of your saving is?
What is this firm’s marginal cost function? Over what range of output are the firm’s marginal costs decreasing? Increasing?
Define the Quantity of Money theory and identify whether this is a Keynesian or Classical cornerstone. Describe what happens when, according to this theory, the money supply is increased.
Assume 2 firms on a street of length 1, with zero costs of production. Consumers are uniformly distributed on this street, desire only one unit of the good, and value the good at V = 100. To get to the firms and purchase the good, consumers need to p..
The market for books is perfectly competitive and a constant cost industry. The short run industry supply curve is given by the equation P=10+Q, while the industry demand curve is given by the equation P=150-Q, where P is the market price and Q is th..
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