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Overall, do you think globalization is positive or negative? Does it increase standards of living around the world, or suffocate other cultures under an onslaught of Big Macs and Coca Cola?
A manager has been allotted $8000 to spend on the development and promotion of a new product. It is estimated that if x thousand dollars are spent on development and y thousand dollars on promotion, approximately f(x,y)=91x^(1/2)*y^(3/2) units of the..
Economists say that excess capacity in monopolistically competitive markets is "the cost to society of variety." What is the cost that economists are talking about, and why is this cost the result of having a variety of goods and services?
What are some of the online fraud schemes that you have heard about, and what do you think is the next online fraud scheme that will make the 5 o'clock news?
Explain why firms should not shut down in the short run until price falls below average variable cost. 3. Suppose your economics professor publicly states that she grades on a curve
Other things equal, the demand for a good tends to be more inelastic when?
Compared with perfect competition, quantity produced in monopolistic competition is inefficient as price is higher than marginal cost (i.e. allocative inefficiency). Why do some economists argue that even if price is higher than marginal cost, it doe..
One of the basic facts of financial markets is that financial intermediaries, particularly banks, are the most important source of external funds used to finance business. Explain the reasons from what we learned in Chapter 8 from Money, Banking and ..
Why is investment significant to economic growth? Please explain. What benefits does economic growth of economy provide to the average individual living in the economy? How can the government encourage economic growth via corporate taxes and other me..
The sales manager for ABC Electronics wants to maximize his profit on the sale of two portable media player models, JVD-2000 and MDP-72. The wholesale costs of these models are $310 and $100 per unit respectively. Find the optimal number of the two d..
Then suppose Income increases to 1261 and Pinputs increases to 144. Elucidate how large is the change in the equilibrium price.
Metro Airlines runs 10 flights per day at a total cost of $50,000, which includes $30,000 in fixed costs for airport fees, airplanes, and the reservation system and $20,000 invariable costs for flight crews, fuel, baggage handlers, and food service. ..
An electric utility company uses natural gas as fuel for a large multi-unit power plant. with all units in service, for a given hour the plant's fixed cost is $120,000 and its variable cost is $50 per megawatt demanded. What is the hourly demand in m..
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