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Briefly explain whether it is possible for firms in a perfectly competitive market to earn zero economic profit even if they have incurred a sunk cost upon entry into the market. Given an example of such a cost.
M1 money growth in the U.S. was about 15% in 2011 and 2012, and 10% in 2013. Over the same time period, the yield on 3-month Treasury bills was close to 0%. Given these high rates of money growth, why did interest rates stay so low, rather than incre..
According to foundation of economics by Robin Bade, in chapter page 80 the multiple choice question in table 1. Table 1 shows the PPF of an island community. Choose the best statement. Mary makes 10 pies and 20 cakes a day and her opportunity cost of..
There are three primary branches of government in the United States. For each of the three branches, describe how members of the branch are determined and the general functions and powers of the branch. What do you believe is most important for the p..
Explain the purpose of an agreement template and why a written agreement best serves to generate commitment to the agreement
Given a production Yt=(Abar)Kt^(1/3)Lt^(2/3) and K*=1000 and Abar=3/2. and also there are Lbar=1000 workers who supply labor in elastically. What does the long run model say wage in this economy is?
Customers arrive at a movie theater at the advertised movie time only to find that they have to sit through several previews and prepreview ads before the movie starts. Many complain that the time devoted to previews is too long (The Wall Street Jour..
The smaller the price elasticity of demand, the
Explain why study pure competition if actual purely competitive markets do not exist? What can we learn from highly competitive markets. Briefly discuss.
A few years, the price of New York City taxi medallions hit $1,000,000. What do you think was behind the increases in the price of New York City taxi medallions? Is that a problem for the city? Should the city intervene in the market for these medall..
If the company were to build the bridge, illustrate what would be its profit-maximizing price. Would that be the efficient level of output.
The ABC Co. is considering purchasing a new widget machine. The company interest rate (MARR) is 12%. Which (if either) of the two new widget machines for which annual cost data are available should ABC purchase? Use incremental rate of return analysi..
A consumer splits their income equally between two goods. If the price of one good increases by 10% and their income increases by 5%, show that the consumer’s optimal consumption bundle will change despite them being able to afford their original bun..
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