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A drug patent gives a pharmaceutical firm a monopoly. Draw and label the supply and demand curves for a drug. Then demonstrate how having a monopoly changes that equilibrium. How does this impact consumer surplus? What actions can the government take to ensure a consumption, Q, that is closer to the equilibrium Q*?
Let’s say the current administration decides to make a college education more affordable, so they establish a price ceiling of $50 per credit hour for community colleges, $75 per credit hour for four year institutions, and $100 per credit hour for gr..
A farmer uses three inputs to produce vegetables: land, labor, and capital. The production function for the farm exhibits diminishing marginal rate of technical substitution. What happens to the cost-minimizing quantities of labor and capital for a g..
If you produce plastic spoons and one of the products (like petroleum) required to produce those spoons decreases in price, does the market demand for plastic spoons change? Does market demand for competitors with similar items but made from differen..
In his will, a man wishes to establish a perpetual trust to provide for the maintenance of a small local park. If the annual maintenance is dollar 7500 per year and the trust account can earn 5% interest, how much money must be set aside in the trust..
Explain why do changes in bank reserves resulting from open-market operations by the fed produce multiple changes in checkable deposits in the economy.
Describe the different types of unemployment and their causes, explaining how an individual would be affected as the unemployed person in each case.
For a perfectly competitive firm, the price of its product is $3.50. If an additional unit of a resource yields a value of the marginal product (or MRP) equal to $24.50, what is the value of the marginal-physical product? A firm's objective in busine..
A firm in a purely competitive industry has a typical cost structure. The normal rate of profit in the economy is 5 percent. This firm is earning $15 on every $150 invested by its founders. Instructions: Enter your answers as whole numbers. What is i..
What would the lading capacity of the banking system be after such a portfolio switch? How large would the money supply be if the banks fully utilized their lending capacity?
List the activities in the doctor's office that are candidates for nonvalue-added activities. Explain why you classify them as nonvalue-added activities.
Calculate the balance due, principle payment, and interest payment for each period of a new car loan. the nominal interest is 8% per year, compound monthly. Payments are made monthly for 5 years. The original loan is for $27,000.
All loans shall be computed at an annual percentage interest rate(APR) of 3.75%. It is assumed that you will need the loan for four years (eight semesters). You will not make any payments towards the principle of the loans while you are attending col..
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