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Suppose 4 neighboring farmers want irrigation and flood control systems. Each farmer can install one system for $15,000, and is willing to do so. If 2 farmers go together they can build a joint system for $25,000, and 3 can build one system for a total of $30,000.A single system for 4 farms would be $44,000. What is the most efficient choice for all 4 farms? Does this technology possess economies of scale?
How would you go about determining whether innovation and the incentives for innovation are becoming more important factors in the performance of firms and industries?
Explain Lorenz curve and apply to unequal distribution of income where the top 1% of income earners have disproportional of income. What percent of income is earned by the lowest 20% of the population?
The consumer likes orange juice and cranberry juice but he or she does not like to have them together. In another words, consumer prefers 8 units of orange juice and 2 units of cranberry juice or 8 units of cranberry juice and 2 units of orange juice..
Which of the following statements about setting optimal two-part tariffs for many consumers is NOT true? Explain your answer.The total profits is composed of the profit from the entrance fee (tariff) and from the profit from sales to buyers.
Calculate the target cost for maintaining current market share and profitability. Can the target cost be achieved? How?
Discuss what tactics southern municipalities used to prevent African Americans from achieving equality before the civil rights era?
If the firm produces 60 units of output, what are profits or losses for this firm? Is the firm maximizing profits producing Q=60? If not, what is the profit maximizing level of output produced? What are maximum profits?
Suppose that the initial loan of $20,000 and interest rate 1.2% per month. Interest due is paid at end of each month. $10,000 of the original unpaid balance is to be repaid at the end of month two and three only. How much total interest would have be..
What does the invisible mean in economics and how des it affect macro?
q1. you bought two new cds with the last 30 in your checking account and your next payday is on monday. what is the
A bank has a net income (after taxes) of $3.5 million; assets of $150 million; and bank capital of $12.5 million. What is the bank’s (i) return on equity; (ii) return on assets; and (iii) debt-to-equity ratio? Show your work.
A state highway department is trying to decide whether it should “hot-patch” a short section of an existing county road or resurface it. If the hot-patch method is used, approximately 300 cubic meters of material would be required at a cost of $700 p..
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