To advertise the health benefits of bicycling

Reference no: EM13200936

Suppose that bicycles are produced by a perfectly competitive, constant cost industry. Which of the following will have a larger effect on the long-run price of bicycles:

(1) a government program to advertise the health benefits of bicycling.

(2) a government program that increases the demand for steel, an input in the manufacture of bicycles that is produced in an increasing cost industry? Explain briefly.

Reference no: EM13200936

Questions Cloud

To justify the plan of mba at southern university : Your current job pays $25,000 per year (after taxes), but you could earn $55,000 per year after taxes if you had a MBA at Southern University.justify your planned MBA at Southern University.

Define equal to the percent of growth per unit of time : k is the growth constant equal to the percent of growth per unit of time. An artifact is discovered at a certain site. If it has 65% of the carbon- 14 it originally contained, what is the approximate age of the artifact?

What is the natural rate of the unemployment : What is the relationship between potential output and the natural rate of unemployment If the economy currently has a frictional unemployment rate of 2 percent, structural unemployment of 2 percent, seasonal unemployment of 0.5 percent.

Solve utilizing the five-step problem-solving process : Solve using the five-step problem-solving process. Show all steps necessary to arrive at your solution. If an object is propelled upward from ground level with an initial velocity of 92.5 feet per second, its height h in feet t seconds later

To advertise the health benefits of bicycling : Suppose that bicycles are produced by a perfectly competitive, constant cost industry. Which will have a larger effect on the long-run price of bicycles a government program to advertise the health benefits of bicycling.

How would such adjustments affect the slope of the aggregate : discuss why this might happen. Suppose that labor and management agree to adjust wages continuously for any changes in the price level. How would such adjustments affect the slope of the aggregate supply curve

Find the real number iteration scheme : Consider the real number iteration scheme x_n+1 = f(x_n) for n = 1, 2, ... with x_1 given. In addition, suppose there is a number 0

Define are consumers deriving any consumer surplus : Compared to the prices if $30 and $25, what can you say about the marginal valuation that consumers place on the 300th shirt , the 700th shirt and the 1200th shirt they might buy each year. With diminishing marginal utility, are consumers deriving ..

Find the probability that a particular child is a girl : Suppose a family plans 6 children, and the probability that a particular child is a girl is ½. Find the probabilities that the 6-child family

User Account

All Pages