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A newsix-speed automatic transmission for automobiles offers an estimated 3?% improvement in fuel economy compared to traditional four speed transmissions in front-wheel drive cars. If a four-speed transmission car averages 26 miles per gallon and gasoline costs $2.50 pergallon, how much extra can a motorist pay for a fuel-efficient six-speed transmission Assume that the car will be driven for 125,000 miles over its lifetime of 8 years. The motorist can earn 8?% per year on investments. Assume miles driven each year are roughly constant
Explain how the price-specie-flow mechanism operates to maintain balanced trade between countries. What are the assumptions that are critical to the mechanism's successful operation?
Consider a monopolist in a market with linear inverse demand p(q) = 4 - q/2. The monopolist's cost function is c(q) = 2q. Write down the monopolist's profit function. Compute the profit-maximizing quantity and the corresponding price.
If Starbucks raises its price by 6 percent and McDonald’s experiences a 0.6 percent increase in demand for its coffee, what is the cross-price elasticity of demand?
An xperimental composite engineblock for an automobile will trim 20 pounds of weight compared with a traditional cast iron engine block. it is estimated that at least $2500 in life-cycle costs will be aved for every pound of weight reduction over the..
Why does a teacher earn less than a firefighter? Why does a union electrician earn less than a non-union electrician?
Conduct a thorough analysis of both the classical economic model and the Keynesian economic model. Describe the impact on the aggregate demand and supply curves, along with the impact on inflation and unemployment.
Dairies make low-fat milk from full-cream milk. In the process of making low-fat milk, dairies produce cream, which in turn makes ice cream. In the market for low-fat milk, the following events occur: Explain the effects of each of the above events o..
Suppose that the demand for orange increases. Carefully explain how the rationing function of price will restore market equilibrium.
Consider the following Specific Factors model. Suppose two countries, Home and Foreign, produce two goods, timber and televisions. Assume that land is specific to timber, capital is specific to televisions, and labor is free to move between the two i..
What is the meaning of a four-firm concentration ratio of 30 percent? 85 percent? Suppose five firms in industry A have annual sales of 30, 30, 20, 10, and 10 percent of total industry sales. For the five firms in industry B, the figures are 60, 25, ..
A west main street massage school is offering college students a discount for massages. Their normal prices were $60 for 60 minutes, and they typically booked 30 massages a week at that price. The past week when they offered the same 60 minute massag..
Does this critical path make sense. Do your predecessors make sense. How accurate are your durations? What could be done to improve accuracy of your durations.
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