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Q1. Labor is a resource that is necessary to produce many goods. "If the price of labor falls," says the economist, "the prices of goods will soon follow." How does this work?
Q2. A manufacturer supplies popular consumer products that use a special cable. The demand is 5000 cables per week. For orders of 1 - 9, the cost is $4 a piece. For orders of 10 - 99, the cost is $3 a piece. For orders 100 - 1900 (100 pieces/case), the cost is $2. For orders of 20 cases (20 case/pallet), the cost is $1.5. The setup cost is $100 per order up to 99. For orders of less than a pallet, the setup cost is $200. The setup cost for pallet loads is $1000. The holding cost is 1% of the purchasing cost per item per week.
if income were hypothetically $0 aggregate expenditures would be $2,500. What is the marginal propensity to expend?
What would the annual percentage change in velocity have to be on average for the quantity theory to hold.
Compute the coefficient of variation for each project and Classify the preferred project according to this criterion.
The problem is that the professors also want to attend the party and enjoy the music with the students but they can only attend if they agree to serve beer to the students. Normally, professors do not like this. The marginal cost to them is 200.
Suppose that your production facility can only produce 1,000,000 pills per year. Illustrate what is your optimal price and quantity given the production constraint.
Clarke's workers are highly skilled artisans with a great deal of job mobility. What impact would the wage increase have upon the firm's employment.
operating deficit is asking should the transportation authority increase or decrease the price per ride based upon the price elasticity of demand.
The firm's average variable costs and average fixed costs per month are R200-00 and R500-00, respectively.
Illustrate what does your anticipated adjustment process imply about the CR for the industry. Industry B has 20 Industries also a Concentration Ratio (CR) of 80%.
Traditionally, taxi drivers were only paid by the mile. A couple of decades ago, Yellow cab experimented with paying the same per mile rate plus a fixed fee every time a customer got in the cab. How does this change driver behavior?
What would happen in this market? If consumers’ expectations were such that they were concerned about the economy and jobs, what would you think would happen in this market?
Identify the impact of the policy on Demand or Supply of the good(s) or service(s). Discuss the change(s). Draw a supply and demand graph to explain this change. Be sure to label your graph and clearly indicate the change of the curve.
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