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How will a tax of $5 per unit produced affect the short- and long-run marginal and average cost curves? What about an annual license fee of $500 per year regardless of production level? (Make sure you address all possible average costs—e.g., fixed, variable, total—depending on whether you are in the short or long run.)
The impact of labor migration on patterns of international trade depends on the characteristics of the labor migrants. In which cases might migration expand trade? World income? In which cases might it reduce trade and world income?
A restaurant owner has the following short-run production function: Draw a table showing total, marginal and average product up to an input of ten workers, and plot these on a graph. Show the range of labour where stages I, II and III of production o..
Income from cardboard recycling at Fort Bliss has been increasing at a constant rate of $800 in each of the last 4 years. If this year's income (i.e., end of year 1) is expected to be $4000 and the income trend continues through year 6, (a) what will..
Currently you can purchase a used 10 year old CAT 24D for $85,000. Ten years from now, you think that a comparable used machine will sell for $105,000. What is the average annual inflation rate on used equipment that you are expecting during this 10 ..
Consider the market for makers in the imaginary economy of Meekertown. In the absence of international trade, the domestic price of a meeker is $32. Suppose that the world price for a meeker is $24. Meekertownian consumers are better off under free t..
directly to patients, who then would be free to choose their health care providers. Whether or not you agree, can you give an economic rationale for this approach to governmental health care funding?
Mighty-lite inc., a manufacturer of plastic tables for institutional use is considering a capital spending program involving annual expenditures of 100,000 for each of the next five years.
The Environmental Protection Agency (EPA) is an independent department with a cabinet level secretary of Environmental Affairs. The Kyoto Protocol had strong support in the U.S. Senate.
Consider an economy where people can be either employed (e) or unemployed (u) . Let’s normalize e+u=1 , so that at any given point in time, e is the fraction of people employed. Conditional on being employed today, the probability of getting fired is..
A boat is purchased by financing $40000. The loan is to be paid over a 5 year period with annual payments based on a 12% interest rate. Each successive payment is scheduled to be 10% greater than the previous one. Determine the size of the smallest p..
A sportswriter wants to know how strongly the residents of Indianapolis, Indiana, support the local minor league baseball team, the Indianapolis Indians. He stands outside the stadium before a game and interviews the first 30 people who enter the sta..
Suppose the average Social Security benefits in the nation are $14,000 per year. The number of Social Security pension recipients is currently 50 million. There are 150 million workers in the workforce this year and the average taxable wage per worke..
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