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Can you give me at least two examples of how average cost pricing has distorted regulated markets in electricity and natural gas. How does the mispricing affect customer behavior?
Which of the following statement(s) are true for a perfectly competitive firm that is seeking to maximize profits? The best production choice is at a quantity where price is equal to marginal cost. Price is equal to marginal revenue.
The "Artificial Intelligence (AI) Corporation" has two divisions: Manufacturing and Sales. When a new worker is hired both she and her supervisor are equally ignorant about her ability. There is no skill involved in making and marketing AI robots; ho..
Suppose that the quantity demanded for Windows 7 system is given by Q = 320 − 2P, where P is the price of the Windows 7. Let us assume that the total cost of producing Q units of Windows 7 is given by C(Q) = 500 + 0.5Q2. What is the price that Micros..
Suppose Congress and the president decide that the best method to stimulate the economy is to cut taxes. The total amount of tax cuts approved is $300 billion and the current MPC is .80. Determine the initial fiscal stimulus and the cumulative fiscal..
Write two paragraphs on the polices to reduce income inequality and poverty. Explain the content of these policies and make a comparative assessment.
Discuss why you would not expect all industries to have a similar relationship to the economy. Give an example of two industries that have different relationships to the economy. Please discuss your findings and how the economy will affect them diffe..
The income elasticity of demand measures, for a given price, the ________________ in quantity demanded divided by the ____________________ income from which it resulted. If a decrease in the price of one good causes a decrease in demand for another g..
Successful collective bargaining (on the part of a labor union) will have what effect on the market for labor? It will
When the Smith family lived in Japan they consumed 4 lbs of rice per week and 2 lbs of potatoes per week. When the Smith family lived in Germany their consumption drastically changed to 4 lbs of potatoes per week and 2 lbs of rice per week. Although ..
Consider a market characterized by the following demand and supply conditions: Px=100-5Qx and Px=20+3Qx. The equilibrium price and quantity are, respectively:
The city of Joslyn has three sources of revenue, borrowing, proprietary income from running the local power utility, and taxes. If it recieved $10 million from running the electric power utility and borrowed $40 million, how much did it collect in ta..
Why is the production possibility frontier bowed outwards?
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