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In perfect competition, according to theory, all suppliers or consumers are price takers. In practice firms like Purdue farms or jimmy dean bring a higher price than other brands. why doesn't economic theory apply to these organizaton? How are these organizations and others like them to demand, and receive a price higher than the equilibrium price?
Assume that labor supply and labor demand are described by the following equation -labor supply: L=5w -labor demand: L=110-0.5w where w=wage expressed in dollars per hour, and L(s) and L(d) are expressed in millions of workers. find the equilibrium w..
In the movie Princess Bride, the hero disguised as the pirate Westley is engaged in a game of wits with the villain Vizzini. Westley puts poison in either his own glass of wine or in Vizzini's glass. Construct the payoff matrix for this game. Assume ..
Suppose that the Fed intervenes in the foreign exchange market to lower the value of the dollar. Assuming that domestic and foreign assets are perfect substitutes, use T accounts of the Fed to show how an unsterilized foreign-exchange intervention di..
If the cost for the first semiannual period is expected to be $85, what is the present worth of the costs for a 4-year time period at an intrest rate of 1% per month?
Illustrate what is the expected annual demand also the total revenue corresponding to your recommended price
Quality Motors, Inc., refused to sell a car to Hays because he was only 16 years old. However, Quality told Hays that they would sell the car to an adult and then show Hays how to transfer the title to his name. Hays agreed with the scheme and came b..
The current exchange rate between the Japanese yen and the U.S. dollar is 120 yen per dollar. At current prices, a basket of goods that costs $100 to produce in the U.S. would cost ¥11,000 to produce in Japan. What is the current real exchange rate b..
Are you for or against free trade? Are you for or against NAFTA? What is the economic basis for trade? Explain the underlying facts that support free trade and give an example of a good that you purchased recently that is based on resource difference..
q.suppose you consume nothing but goods x and y. we have two years? of data regarding your consumption and incomeyear
Suppose that Clear Vision, Inc., a cable television carrier, has the demand, marginal revenue, total cost and marginal cost functions given below: where Q = the number of cable subscribers and P = the price of basic monthly cable service. If you are ..
Suppose a government lives for two periods. It makes an exogenous amount of government expenditures each period. These have nominal value P1G1 = 100 and P2G2 = 50. It also charges households a lump sum tax, Tt each period. Write down the government’s..
Three friends (Julie, Kristin, and Larissa) independently go shopping for dresses for their high-school prom. Upon reaching the store, each girl sees only three dresses worth considering: one black, one lavender, and one yellow. Provide the game tabl..
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