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What happens to employment in a competitive firm that experiences a technology shock such that at every level of employment its output is 200 units/hour greater than before?
One family of social dilemmas arises where a group of people are involved in some task that depends on the efforts of each of them. The strategy choices are work or shirk. In an effort dilemma, one persons shrinking places the burden of increased eff..
Unit I PowerPoint Presentation As stated in the Unit I Lesson, the importance of an international trade can be roughly measured using a ratio called openness. Include no more than six abbreviated bulleted items for each slide in approximately 24-poin..
Let a consumer's utility function be U = min (Computer, Operating System). That is, the consumer needs one operating system per computer to be able to use them. Derive the consumer's demand function for computers as a function of prices and income.
What will the sustainability movement look like over the next 20 years? What issues do you expect to take center stage? How will business respond?
What are the marginal propensity to consume (MPC) and marginal propensity to save (MPS)? How are the two concepts related? How are the two concepts related to the consumption and saving functions? What is the effect of net exports, either positive or..
The chart on the following page shows the average daily demand for tokens on a major urban rapid transit system. What is the elasticity of demand at a fare of $2.50/token? Is the revenue maximizing fare higher than, lower than or equal to $2.50/token..
What impact would (a) and (b) have on the real price of resources, profit margins, output, and employment.
Describe the difference between a diminishing marginal product of labor and a negative marginal product of labor. Why would a profit-maximizing firm always choose to operate where the marginal product of labor is decreasing (but not negative)?
Discuss the new equilibrium price also quantity which result from these changes. Can you exhibit some of these changes graphically.
Ceteris Paribus is latin for. An example of ordinal measure would be. Which slope(s) may a supply curve not have? The fact that as we consume more of good we enjoy each subsquent unit less (1st hot wing vs. hot wing) is an example of what theory?
A movie theatre has a cost function which entails the rent of the commercial building of $50 per day (fixed cost) and a marginal cost of $5 per viewer. Assume now that the movie theatre can give price discounts to students. Explain the concept of pri..
If a tax were to be imposed on one of these items, for which item would the tax be the most efficient.
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