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A perfectly competitive tomato industry is in long-run equilibrium. Now suppose that some consumers are getting sick by eating tomatoes that contain salmonella. Describe how this change will affect short-run economic profits. What will happen to the number of tomato growers in the long run? How will price and output in this industry adjust in the long run?
q.as an analyst at the treasury department you have been asked to predict the behavior of key macroeconomic variables
Charlie has utility function U(x,y)=24x^1/2+y. If he maximizes her utility, what is the amount of good y that he consumes, when price of x is 4, price of y is 1, and income is 50 (in this case utility maximization is characterized by the tangency rul..
q.jake takes 40 minutes to fry a chicken and 2 minutes to toast a slice of bread. his brother elwood takes 20 minutes
A cafe catering for staff in a large corporation offers steak sandwiches and hamburgers as part of its menu. Recently corporation staff were awarded a 7.5% wage rise. Since then the cafe manager has noticed that average daily sales of steak sandwiche..
What is supply and demand. Illustrate what is the value of the tax revenue collected from the buyers. Why wasn't the government able to collect $12 per tire on 60 tires sold( the original equilibrium quantity).
Your grandmother is gifting you $100 a month for four years while you attend college to earn your bachelor's degree. At a 5.5 percent discount rate, what are these payments worth to you on the day you enter college?
Consider a free market with demand equal to Q= 1000 – P and supply equal to Q = 20P. What is the equilibrium price and quantity?
Assume an open, mixed economy. Assume the MPC is .7. Assume a stimulus package of $100 billion has been approved by Congress and the money has been spent. In order to pay for those expenditures, Congress also approved a $100 billion increase in indiv..
Illustrate what Monetary strategy Tools should the Federal Reserve use to fight a recession. Describe them thoroughly.
Assume that American lumber companies make 52 billion board-feet of lumber each year, of which 10 billion are exported and 42 billion are sold in the United States. The average price is 30 cents per board-foot. How much producer surplus would U.S. lu..
Capital budgeting is an integral part of the strategic planning and budgeting process of most firms. Explain and provide a numerical example of the use of the internal rate-of-return method and the Net Present Value (NPV) method of analyzing capital ..
Consider the bond market. Show graphically and explain how a reduction in expected inflation would affect bond prices, quantities traded and yield.
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