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Derive and explain the derivation of a production possibility curve. Show how it is possible to have actual GDP above "potential GDP." What is potential GDP?
Average cost includes both fixed and variable costs, whereas the marginal costs include only variable costs. Therefore, marginal cost is never greater than the average cost." Comment on this statement.
Think about an advertisement (in any medium) that had either a strongly positive or strongly negative effect on your attitude toward the product being advertised or the advertiser itself. Why did the ad have this effect? If you responded positively t..
Explain what occurs when a new technology makes another one obsolete in terms of economic profit?
Use the concept of "optimum fringe benefits" to assess the wisdom of Congress mandating that employers offer some specific fringe benefit (daycare for children of employees, say) free of charge.
The government budget is balanced, with government purchases and taxes both fixed at $1,000. Net exports are $100.
You buy only apples and bananas. Your budget is such that you can purchase 3 apples and 4 bananas or 9 apples and 2 bananas. Write down the equation for the budget line with bananas on the y-axis. Is that equation unique?
The production department for a company requires 7200kg of raw material for manufacturing particular item per year. It has been estimated that the cost of placing an order is A 72 and the cost of carrying inventory is 25 percent of the investment ..
Suppose that they are negotiating with two non-drowsy allergy drugs, Claritin and Allegra, for inclusion on the formulary. The "value" or "surplus" created by including one non-drowsy allergy drug on the formulary is $100, but the value of the second..
What will the new Lerner Index be after some time with the new demand curve and market price of 30? What firms survive the new demand curve in the industry and why?
Sam has preferences for consumption goods (C) and time spent on leisure (L). The utility function is u(C,L) = CL. The household also has a home production technology summarized by a production function. How much time will Sam spend in leisure? How ma..
Hollywood screenwriters negotiate a new agreement with movie producers stipulating that they will receive 10% of the revenue from every video rental of a movie they authored. They have no such agreement for movies shown on on-demand television. When ..
In July of 2012, Taylor purchased 1,700 shares of XYZ common stock for $75,000. He then sold 1,000 shares of XYZ in July of 2013 for $37 per share. The remaining 700 shares were finally sold for $75.71 per share in July 2014.
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