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What individual’s decision is altered as a result of not taxing the imputed rent earned by those who live in their own house? How so? Explain.
What happens to price and output in the Cournot, Bertrand, and Stackelberg models if marginal costs increase by 10 percent? The market demand is p = a-bQ and the marginal cost is constant across firms, i.e. mc1 = mc2 = c. You may consider for two fir..
Consider a beach that is one mile long and populated by 2,000 people (uniformly distributed). A particular location on this beach is identified by the number x , where 0 \leq x \leq 1 . There are two concession facilities that sell ice cream, Store 1..
What is now the effect on gold consumption and mining of an increased use of gold as money.
The country of Meditor uses the merit as its currency. What were its consumption and government expenditures on goods and services.
Specialty Steel has carefully measured production in its new plant to determine whether it is technically efficient in production.
Resource price differentials that do not trigger the reallocation of resources are known as
What is the marginal rate of substitution (MRS) and why does it diminish as the consumer substitute's one product for another. Use examples to illustrate.
What is the impact on the long run adjustment due to this condition. First, look at the impact of the market and then the single firm. What does it do to economic profits or losses, then what happens in the market.
Assume quantity theory of money holds with constant K and Kf. Suppose Mexico wants to stabilize the exchange rate of its currency with US dollar (dollars/peso). If US is running a 5% inflation rate solely due to the increase of money supply, what is ..
Compare also contrast McDonald's strategies in China with those of Wal-Mart in Mexico.
the shape depends partly on how much time consumers have to adjust a change in prices. Over a short period the demand curve is fairly steep because a few adjustments can be made.
To automate one of its production processes, Milwaukee Corporation bought three flexible manufacturing cells at a price of $500,000 each. When they were delivered, Milwaukee paid freight charges of $25,000 and handling fees of $12,000. Site preparati..
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