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Suppose all firms in an industry have "competent" managers and earn zero economic profit. The manager of one of the firms suddenly leaves and the firm finds that only incompetent applicants respond when the position is advertised at the original salary of $50,000/yr (which is the going rate for competent managers in this industry).Under an incompetent manager paid this salary, the firm will experience an economic loss of $20,000/yr. At what salary would it make sense for this firm to hire an incompetent manager?
The new mayor has pledged to reduce air pollution, and the only source of air pollution in the city are two cement plants, plant A and plant B. 25 years ago, when plant A was constructed, the cement production techn..
There are various estimates for the amount of jobs saved by the federal government's stimulus plan the American Recovery & Reinvestment Act (ARRA) of 2009. (a) According to the Council of Economic Advisors' report from January 2010.
The reasearch topic can be about trade, commodities, demand or supply, elasticities, health issues, monetary issues etc. Also, can be about the markets in your town or country that you leave.
A farmer believes there is a 50-50 chance that the next growing season will be abnormally rainy.His expected utility function has the form Expected utility=1/2lnYnr+1/2lnYr, where Ynr and Yr represent the farmer's income
Maria can read 20 pages of economics in an hour. She can also read 50 pages of sociology in an hour. She spends 5 hours per day studying. a.) Draw Maria's production possibilities frontier for reading economics and sociology.
One unit of object is going to be sold via auction. There are two bidders, A and B. Their willingness to pay are known to be either of 10,20,30,40,50 and bids are also restricted to those values.
Bob and Dexter share a dorm room. Bob is a smoker but Dexter does not smoke. There are no laws that prohibit smoking in the dorm rooms. The benefit of smoking is worth $250 to Bob, but the smoke imposes a $500 cost on Dexter.
When the price of a deluxe car wash rises from $10.00 to $11.00, the number of daily customers falls from 60 to 48
Calculate and print out the balance due, principal payment, and interest payment for each period of a used-car loan. The nominal interest is 12% per year, compounded monthly. Payments are made monthly for 3 years. The original loan is for $11,000.
If in an economy a $150 billion increase in investment spending creates $150 billion of new income int he first round of the multiplier process and $105 billion in the second round, the multiplier and the marginal propensity to consume will be
Suppose your company is considering three health insurance policies. The first policy requires no tests and covers all preexisting illnesses. The second policy requires that all covered employees test negative for the HIV virus.
The marginal revenue curve of a monopoly crosses its marginal cost curve at $30 per unit, and an output of 2 million units. The price that consumers are willing and able to pay for the output is $40. If it produces this output, the firm's average ..
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