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An eccentric scientist invent gadget and makes huge profits. Unfortunately, he is so preoccupied with his newly found fame and fortune that he forgot to secure a patent for his special product. a. What can be expected to happen to the supply of the gadget? b. What can be expected to happen to the price and the demand of the gadget?
Should the United States pass a minimum wage that assures all workers earn a wage above the level of poverty.
Executives estimate, for the first year, that they will have gross revenues of $500K, total costs of $300K, $30K in tax deductions and a one-time start-up credit of $8K. What will the company pay in income tax?
An investment that brings $40,000 two years from today is worth what present value in terms of today’s money with an interest rate of 25%?
q1. suppose that people consume only three goods as shown in the table tennis balls golf balls bottle of gatorade2009
A drug company has a monopoly on a new class of eye drops. The market demand is given by P=200-0.03*Q, and thus MR=200-0.06*Q. The monopolist's marginal cost is constant and equal to 20. Calculate the profit-maximizing price.
The marginal value schedule for Moe and the marginal cost schedule for Larry for apples are shown below. Find a single price that all mutually preferred trades can occur. What are the gains from trade?
Economic rent represents
The European Union has heavily protected its farm sector through import duties; in addition, the Union subsidizes its exports of agricultural products. If “cropland” is regarded as a factor of production and is included in the Leontief statistic (alo..
The demand in Japan for new automobiles is elastic and sensitive to market prices. Given that, describe the effect of each of the following on the quantity demanded or the demand for new autos in Japan.
A firm scaled up its operation by increasing all inputs by 100%. If the firm experienced 150% increase in the output, the firm's long-run average cost exhibits:
Using accelerated depreciation rather than straight line would normally have no effect on a project's total projected cash flows but it would affect the timing of the cash flows and thus the NPV.
Illustrate what does this theory predict about the term structure of interest rates in terms of how the yield of long term bonds are related to yields on a sequence of 1 year bonds.
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