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In 2005, Apple introduced the Mac mini G4, a miniature computer that weighs only 2.9 pounds but comes fully loaded with lots of memory and a large hard disk. According to one estimate, the cost of production was $258 (Toni Duboise, "Low-cost Apple Mini Packs Punch, but BYO Peripherals," www .eetimes.com), while its suggested price was $499. Although other firms produce computers, the Mac is viewed as a different product by aficionados. What is Apple's price/marginal cost ratio? What is its Lerner Index? If we assume that Apple is a profitmaximizing monopoly, what elasticity of demand does it believe it faces for this tiny computer?
Consider an IS-LM model in which money demand depends on after-tax income, so the LM equation is M / P = L(r,Y ?T) . The IS equation is standard one, Y = C(Y T) + I(r) +G. Assuming a fixed price level in the short run, find the signs of dY* / dG a..
Given the existence of such suits, explain why class actions that bundle small meritorious cases serve an important economic function.
If an economy has one consumer who views its two goods as perfect substitutes and a second that considers each unit of good 1 to be worth 2 units of good 2, find the Paretoecient allocations.
the short-run price elasticity of demand for tires is 0.9. If an increase in the price of petroleum (used in producing tires) causes the market prices of tires to rise from $50 to $60, by what percentage would you expect the quantity of tires dem..
Graph and carefully label the individual supply curves, and then graph the market supply curve for oranges (at these two prices).
Suppose you have $20,000 cash today and can invest it at an interest rate of 10% compounded each year. How many years (to the nearest one-tenth year, xx.x) will it take you to become a millionaire
If more than one computer can update a replicated database, what three problems can occur?
Is it efficient for the house to be built? If so, how many stories should it be? Suppose the original owner seeks an injunction halting construction.
According to the figure, what share of the per unit tax on bags of coffee beans is paid by the buyers and what share is paid by the sellers?
If the elasticity of demand for cocaine is -.2 and the Drug Enforcement Administration succeeds in reducing supply substantially, causing the street price of the drug to rise by 50%, buyers will spend less on cocaine.
Suppose that instead of 1,200 workers, Home has 2,400. Find the equilibrium relative price. What can you say about the efficiency of world production and the division of the gains from trade between Home and Foreign in this case?
suppose that the interest rate on a one year bond is 7 percent today and the interest rates expected on one year bonds in the future are 6 percents in one year, 5 percent in 2-year , and 4 percent in three years bond. what are interest rate today ..
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