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Describe a particular market transaction or activity that, in your opinion, creates an external cost or benefit. What action, if any, do you believe should be taken by the government in this case?
Consider the following production function. Y=K^5 (AN)^.5 , where both the population and the pool of labor are growing by rate n=.07, the capital stock is deprecciating at a rate of d= .03, and A is normalized to 1. What is the form of this producti..
Suppose the owner bears a monitoring cost of m, which is subtracted from income, so that the owners utility is U (x^beta, y^beta-m). mLet the monitoring cost person be a function m(n) of the number n of team members, with m increasing as n increase. ..
A man may be preferred to a woman by an employer who will make a substantial investment in the training of the employee because
Suppose a firm has the following production technology: one work is required to operate on one machine (capital). More than one worker on the same machine will have a zero MPL. One worker operating on two or more machines will also have a zero MPK. I..
The following activities would not be included in the GDP: the purchase of a new car, gratuities at a restaurant, and payment to a neighbor for lawn-mowing services. Identify three more examples of transactions that would not be included in the GDP. ..
The Marginal Rate of Product Substitution (MRPS) is the rate that one output must be decreased as production of the other output is increased. The most common form of MRPS is?
Larger companies like Toyota and VW will ultimately survive - they have a good deal of money and power to ride out the storm. Toyota is still a top seller - even with all the problems they have had and continue to have. Can you explain why? Why would..
What methods would you suggest to assess the potential commercial success for the following new products? (a) a new, improved ketchup; (b) a three-dimensional television system that took the company 10 years to develop; and (c) a new children's toy o..
Use the Mundell-Fleming Model to predict what happens to aggregate income y, the exchange rate e, and the trade balance NX, under both floating and fixed exchange rates in response to each of the following shocks:
The purpose of the is assessment is to analyze a scenario based on how inflation tends to increase prices and diminishes the consumers’ ability to purchase goods and services over time.
Assuming that budget stays same except for interest on debt for 10 years, what will be accumulated debt? What will size of budget be after 10 years.
Jessica Alba, a famous actress, starts the baby and family products business, The Honest Company, with Christopher Gavigan. Describe a skimming price and a penetration price, and advise them whether they should charge a skimming price or a penetratio..
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