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Why is it that firms can earn profits in the long run in monopoly and oligopoly but not in monopolistic competition and perfect competition? What can firms do in monopolistic competition or perfect competition to make the short run last as long as possible since they can only make profits in the short run? Have you observed any firms employ such tactics?
Tim's utility function is U(X,Y)=(X+2)(Y+1). Write an equation for Tim's indifference curve that goes through the point(X,Y)=(2,8). Suppose that the price of each good is one and that Tim has an income of 11. Write an equation that describes his budg..
Can you make a decision of what part of the business cycle the U.S. economy is currently in? Why? What factors lead you to this conclusion? You may want to do additional research of sources to reach a conclusion.
Is the natural rate of unemployment fixed? Why or why not? How are full employment and the natural rate of unemployment related?
Suppose a dairy farmer in Murfreesboro is concerned with developing a minimum cost per day feed-mix from two sources, alfalfa (X) and corn (Y), which meets (or exceeds) certain nutritional requirements. Write about the objective function and constrai..
Suppose that $2100 is set aside each year and invested in a savings account that pays 8% interest per year, compounded continuously. Determine the accumulated savings in this account at the end of year 26
Suppose that $2700 is set aside each year and invested in a savings account that pays 10% intrest per year, compounded continuously. Determine the accumulated savings in this account at the end of year 24
The main groups without health insurance are;
The government is allowing for emergency procedures to aid suffering chocolate addicts.
Ann’s preferences are represented by a utility function UA(x). Suppose one were to (coloquially) say that Carol has more “sensitive preferences” than Ann: her utility function UC (x) satisfies UC (x) = 2UA(x). Prove that for every choice set, Ann and..
As newly appointed “Energy Czar,” your goal is to reduce the total demand for residential heating fuel in your state. You must choose one of three legislative proposals designed to accomplish this goal: (a) a tax that would effectively increase the p..
Several soft drinks and juice companies are planning to put their names on fresh food and many of their initial forays will be in produce. (For example, Dole introduced freshly packaged salads with croutons and dressing). Discuss 2 challenges that co..
The annual demand for a product has been projected at 2,500 units. This demand is assumed to be constant throughout the year. The ordering cost is $30 per order, and the holding cost is 40 percent of the purchase cost. Currently, the purchase cost is..
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