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The tuition's and fees for any given institution of higher education are theoretically the same for all attending students. Colleges and universities, however, routinely charge different tuitions and fees to different students. These differences show themselves in various ways. In-state, and out of state status, differences in financial position of students’ families, merit based awards, sports’ scholarships and similar devices are among the methods that effectively change the price of same education to be different for different students. Explain what is this practice called and what are some of the motifs behind this behavior by colleges and universities.
Consider the intertemporal production economy of Chapter 11. Suppose that there is a shift in the representative consumer’s preferences. Namely, the consumer prefers, given the market real interest rate, to consume less current leisure and more curre..
Consider a simplified model of preventive care. Suppose that there is only one disease, flu, which can be eliminated by taking a flu shot, with a cost of $110. The probability of getting flu is 0.2. Calculate the expected cost. Calculate the variance..
You are thinking about buying a house. You find one you like that costs $200,000. You learn that your bank will give you a mortgage for $160,000 and that you would have to use all of your savings to make the down payment of $40,000. Is $950 the cost ..
How do you calculate the opportunity cost for: Mark can produce 50 baseballs in a month and Katie can produce 42 baseballs in a month. Also, Mark can produce 40 bats in a month and Katie can produce 30 bats in a month. What is Mark's opportunity cost..
Two important policy goals of the government and the Fed are to keep unemployment and inflation low, while at the same time making sure that GDP is increasing at an average of 3% per year. Assume that the country is in a budget deficit and carrying a..
An aggregate production function F(K,L) gives you how much (aggre-gate) output Y can be produced using (aggregate) inputs K and L, i.e. Y = F (K,L). For each of the following production functions (a) Determine whether they have constant returns to sc..
q. db - does microsoft have a monopoly over operating systems?former dean of the sloan school of management at
Suppose than on Monday a Big Mac cost $3.00 if the exchange rate is $1 to 85 yen how much do you need to buy a big mac cost in Japan? You waited too long before buying your big mac in Japan and then dollar depreciated by 5%. How much would you now pa..
In which of these instances is demand said to be perfectly inelastic. Elucidate is demand curve is horizontal.
Profits associated with polluting for Friedman Inc. are π = 40Q - 2Q2, where Q = pollution emitted (in tons), and profits are measured in dollars.
The price of an 18-pack of eggs is projected to be $2.40 in 2014. Suppose you’re writing some long-term egg contracts subject to the eventual 2014 market prices and you want to get the most eggs per dollar.
Determine the returns to scale, that is, briefly show whether the following productions exhibit DRS, CRS or IRS.
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