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How do economists define a "bubble"? Provide an example of an asset market that you think could be the next bubble and explain why. (Do not use the examples cited in your textbook).
A firm’s production function is given by: f(L,k) = L^1/2 , where L is the only input into production and it is variable in both the short and long run. Draw the long-run conditional labor demand in (L,Q) space (in other words, with L on the x-axis)
What effect does a specific tax have on equilibrium price and quantity, and what is the incidence of the tax on consumers and producers, if the following statement is true:
At the end of the year, a firm produced 12,000 laptop computers. Its total costs were $6 million, and its fixed costs were $3 million.
China's entry into the World Trade Organization (WTO) is likely to create more competition between local also foreign firms also provide China greater access to the marketplace for export.
Suppose El Centro California decides to tackle the problem of nitrates in the water. Nitrates are compounds derived from synthetic fertilizers that are not assimilated by plants and leached out into the underground water and affect the human health. ..
A manufacturer of small plastic injection molded parts (caps, closures, fitments and pipettes) was experiencing static electricity problems during various steps in their molding and handling operations. The static caused the plastic parts to cling to..
Suppose that there are 100 symmetric firms each with a constant marginal cost 3 and a fixed cost 4. They first decide (simultaneously) whether to enter or not enter a market. A firm that does not enter get payoff 0. Find two subgame perfect equilibri..
q.the beta corporation operates in an business that has a herfindahl-hirschman key of 800. beta wants to combine with
A monopsony employer facing a perfectly competitive supply of labor would pay a wage equal to marginal revenue product. Wages for labor will be highest in labor markets consisting of perfectly competitive buyers and a monopolist. Equilibrium in oligo..
Find the firm's marginal revenue. What is the profit-maximizing level of output and price? If TC = 2 + 2q + q^2 , does the monopolist make any profit? What is the competitive market equilibrium? Find social cost of monopoly.
Identify four policies the government enacted following the financial crisis. Evaluate what effect these policies would have on the economy from both a short-run and a long-run perspective. Be sure to include: The distinction between the short-run an..
The economic and financial crisis from 2008 to 2009, also known as the global financial crisis, was considered to be the worst financial crisis since the Great Depression. What are reliable predictors of economic and financial crisis? Describe some a..
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