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What are the advantages when a business chooses to self sourcing rather that hiring an outside source?
Define the terms potential output, expansionary gap, and contractionary gap. Why might actual output exceed potential output (an expansionary gap)? Why might actual output be lower than potential output (a contractionary gap)?
Which of the following would tend to increase AD?
Suppose that there are two firms competing in the market for taxi services. Big Ben Taxis has the marginal cost MCB = $9 per trip, and the fixed cost FCB = $3,000,000. While Whitehall Taxis has the marginal cost MCW = $15 per trip, and the fixed cost..
Wheat can only be sold at a central market place M. All producers that do not produce it at M need to haul it there in order to sell it and will incur transportation cost. People are willing to pay $222 per ton of wheat; its marginal production cost ..
NYC taxi medallions sold for $533,000 in September 2008, $615,000 in September 2010, and over $1.2 million early in 2011. Over the same period, the interest rate ("yield") on a 10-year US treasury note fell from about 4% to about 2%. Explain why the ..
The marginal cost pricing model calculates a markup over marginal costs using estimates of the price elasticity of demand. Will any other pricing strategy result in higher profits?
After that he expects a further increase of 25% in the subsequent four years, so that prices at the end of ten years will have increased to 180% of the present level. Compute the inflation rate, f, for the entire ten-year period.
What are bureacrats and what do economisits argue negatively when considering them in today's economy? Provide an explantion/example of why.
Kermit is considering purchasing a new computer system. The purchase price is $129,090. Kermit will borrow one-fourth of the purchase price from a bank at 10 percent per year compounded annually. The loan is to be repaid using equal annual payments o..
Explain why there is a close relationship between supply, demand and the allocation of resources.
Explain the effects of a tariff and a quota placed on imported automobiles on a domestic market. Who is hurt with a tariff or a quota and why? Who benefits and why?
Provide healthcare examples of the following market failure:
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