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What are the characteristics of perfect competition?
Why does this type of fast-food restaurant tend to display characteristics of perfect competition?
Imagine you are running a firm with the characteristics of a perfectly competitive firm. Describe how your firm would maximize its short-run profits.
The company depreciates its assets on a straight-line basis and has a marginal tax rate of 40 percent. The firm's cost of capital is 14 percent. Based on the internal rate of return criterion, should this machine be purchased?
While you were an intern you bought 5 packages of hot dogs a month. After acquiring a full-time job with a considerably higher salary, you stopped purchasing hot dogs. Explain this behavior. 7. An investor has to choose between stocks A&B, each selli..
The owner of a small printing company is considering the purchase of additional printing equipment to expand her business. If the owner expands the business and sales are high, projected profits (minus the cost of the equipment) should be $90,000; Ar..
With DHL promising increased competition in the US express package (integrated carrier) industry, various stakeholders would greet this prospect quite differently. Choose one of these stakeholder groups and explain from their perspective why you oppo..
The income elasticity of rice in India is estimated to be -0.247. What does the model of supply and demand predict if incomes in India rise?
You are buying a bond at a quoted price of $892. The bond has a 7.5 percent coupon and pays interest semi annually on February 1 and August 1. What is the dirty price of this bond if today is April 1. Assume a 360-day year.
An industry consists of three firms with sales of $200,000, $500,000, and $400,000. Compute the Herfindahl-Hirschman index.
Should innovation activities be linked to our efforts to develop a strategic advantage or should innovation efforts be experimental with an objective of finding products or services that may be profitable at some indefinite point?
Homemakers are not included in the employment or labor force totals compiled by the Bureau of Labor Statistics household survey. They are included in the working-age population totals. Suppose that homemakers were counted as employed and included in ..
In a new 55-and-over gated community, light poles and underground cables need to be installed. It is estimated that 25 miles of underground cabling will be needed and that each mile of cabling costs $15,000 (includes labor). A light pole is to be ins..
The market for DVD rentals in Dallas, Texas, is estimated to be P= 10-0.002Q. Marginal cost (MC) of rental is equal to $2. Where PD is the price (per DVD in $) for DVD QD is quantity of weekly rental. The marginal revenue (MR) for rental is equal to ..
Assume that a firm's only variable input is labor. When 50 workers are used, the average product of labor is 50 and the marginal product of labor is 75. The wage rate is $80 and the total cost of the fixed input is $500.
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