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As economists of the following companies, what advice would you give for cost saving measures for the start-up businesses in the U.S. economy such as Intel, Starbucks, Microsoft, Dell, Google and Cisco Systems? Post your suggestions.
The state if Arizona decided to boost its own minimum wage rate by $1.60/hr. This pushed the wage rate earned by Arizona teenagers above the equilibrium wage rate in the teen labor market.
Consider a monopolist that vents an ozone reducing chemical into the atmosphere as a consequence of their production activities. Is this outcome efficient? Explain with the help of a diagram. Does the monopolsit have an incentive to reduce their poll..
OPEC successfully raised the world price of oil in the 1970s and early 1980s, primarily due to:
Think of ways in which the Government is actively involved with the purpose of changing the economy with regard to unemployment or inflation (or deflation). Do you agree that the Government ought to be involved? Why or why not?
Consider a small town that is served by two grocery stores, White and Gray. Each store must decide whether it will remain open on Sundays or whether it will close on that day. Does either firm have a dominate strategy? Is there a dominant strategy eq..
Define three types of elasticity of demand. Indicate how you would use information from recent research paid by your company that the own price elasticity of your product is -1.2 and not -0.8 as previously thought.
A market with demand Q = 10 p is supplied by a monopoly with costs C(Q) = 6 + 2Q. Calculate the equilibrium price, output, and monopoly profits. What would be the equilibrium if the market were supplied competitively by firms, and each firm had the s..
Johnny Rotten consumes two commodities, namely garbage and vinyl records. He keeps the garbage in the backyard where it is eaten by goats and vermin. The reason he accepts the garbage is that people pay him $2 per sack for taking it.
A consumer's willingness to pay directly measures
A firm produces two goods: widgets (X) and woozles (Y). Its profit function is given by: Π = 55X – 2X2 – XY – 3Y2 + 100Y and its maximum output capacity is X + Y = 17. Use the Lagrangian method to calculate the output mix the firm should produce. Est..
In Project 1 you addressed the problem of selecting specific metrics or measuring sticks that one might want to review and analyze in order to assess the performance of the U.S. macroeconomy.
An airline is considering the purchase of an Airbus A-320neo which offers improved fuel efficiency over the previous generation of narrow-body aircraft. The finance department estimates the aircraft will generate a positive net cash flow of $6 millio..
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