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What is the long-run welfare effect of a profit tax (the government collects a specified percentage of a firm's profit) assessed on each competitive firm in a market?
If the amount of labor to operate the catapult did not vary substantially with the projectile's size, what can you say about the marginal productivity of capital and returns to scale?
You are taking a $2000 loan. You will pay it back in four equal payments, paid every 6 months starting 3 years from now. The interest rate is 6% compounded semiannually. Calculate: (a) The effective interest rate, based on both semiannual and conti..
Use a computer regression package or Excel to work this computer exercise. Palm Products Company has collected data on its average variable costs of production for the past 12 months.
Suppose that the demand for Federal funds curve is such that the quantity of funds demanded changes by $160billion for each 1 percent change in the Federal funds interest rate. Also, assume that the current Federal funds rate is at the 3 percent r..
Assume that a monopolist decides to maximize revenue instead of profit. How does this operating objective change the size of the deadweight loss If you are a "benevolent" manager of a monopoly firm and are interested in reducing the deadweight los..
Most restaurant customers tip according to a percentage rule between 15 and 25 percent of the bill. Diners who have dinner and a $20 bottle of wine usually pay the same percentage of the bottle price as diners who order a $100 bottle.
According to the recent CNBC and the Wall Street Journal poll, 40% of the American public approves of the way the President of the United States is handling his job. Take a random sample of n = 10 Americans. And let X equal the number who gives ap..
The Price of Tattoos. According to a market expert, tattooing in your city is a constant-cost industry. The initial equilibrium price is $24.
Which methods have been followed in India?
What does it mean when substitution effect equal zero? explain with graph and example what does it mean when income effect equal zero? explain with graph and example
The arrival of the second buyer created a "surplus" of $500 (the excess of his offer over the valuation of the first buyer). Describe how this surplus is divided between the seller and first buyer under the two breach remedies.
Let MUa=Z=10-x and MUb=Z=21=2y, where z is marginal utility per dollar measured in utils, x is the amount spent on product A, and y is the amount spent on product B. Assume that the consumer has $10 to spend on A and B- that is, x=y=10. How is the..
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