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Suppose the demand for a chemical is given by Q=100-3P, where quantity is measured in pounds. The market supply is given by MC = 6. Assume the social marginal cost of this product is $8 per unit. a. Find the competitive equilibrium and the level of marginal profit at that point? b. Find the efficient equilibrium and the level of marginal profit at that point? Is it different from the external cost? Give an intuitive explanation.
What microenvironment factors have affected Sony’s performance since 2000? What macro environmental factors have affected Sony’s performance during that period? What stands in the way of Sony’s success today?
Nebraska’s Neat-O Grocery Store is a chain of 100 large grocery stores. Annually NNG receives 500 complaints regarding dents that customers receive on their vehicles from grocery carts in the parking lot. The grocery carts are used carelessly by cust..
When Ajax co. Produced 3 units of output per week, its total fixed cost was $100 and total variable cost was $45. When output increased to 4 units per week, total fixed cost remained at $100 and total variable cost increased to $65.
Suppose that Best National Bank currently has $50,000 in demand deposits and $32,500 in outstanding loans. The Federal Reserve has set the reserve requirement at 10%. Reserves? Required Reserves? Excess Reserves?
In his discussion of post-WWII growth in France, Blanchard describes the effects of destruction of part of a nation's capital stock. Suppose that instead of a decline in the capital stock a country experiences a decline in N resulting from a plague t..
To one side maximizing profits evaluate the factors which managers must consider when making judgment to outsource or integrate forwards/backwards considering which factor would be mainly significant for decision-making.
Suppose the Demand for baseballs is given by Q = 240 – 8P. What is the price elasticity of demand when P = 6? At what price will Total Revenue be maximized?
Use your own words to explain the idea of equilibrium in the income-expenditure model. As part of your answer explain what happens when aggregate expenditure either exceeds or falls short of output in the current period and what impact this has on pr..
Find out the aggregate economic effects of the combination of the shock to the economy and the government's response to it.
If a country wants to fix its exchange rate at a rate that is higher than the market rate, what monetary or fiscal policy must it use? If a country wants to fix its exchange rate at a rate that is higher than the market rate, what monetary or fiscal ..
Using supply and demand and competitive analyses, explain what happens to a pharmaceutical company’s revenues and profits from an individual drug once it loses its patent protection. Then identify at least one strategy the company can use to mitigate..
Which of the following always decreases as output increases? The Southern Tree Trimming Corporation reported an accounting profit of $35,000 and a normal rate of return of 15 percent on capital and enterprise of $30,000. The opportunity cost of labor..
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