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Suppose that the price per unit of input A is 2 euros, the price per unit of input C is 10 euros and the price per unit of input K is 24 euros. What is the minimum cost of producing 40 units of output y for the firm if the firm’s production function is Y = min { A/4 ; 5C } + 2K?
Pick a firm in the fashion/retail industry. In your opinion, how does the firm you selected acquire market power? What impact do barriers to entry have on the firm's market power?
Due to a technical breakthrough, the fixed costs for a firm drop by 25%. Prior to this breakthrough, fixed costs were $100,000 and unit contribution margin was and remains at $5.00. The new amount of break-even units will be?
How does the president most directly influence the Federal Reserve System? The Federal Reserve includes twelve. Which is an example of a natural monopoly? Which of the following circumstances usually comes before a period of economic contraction?
In August 2015 Australian Competition and Consumer Commission (ACCC) dropped its opposition to Qantas-China Eastern alliance and approved the two airlines' cooperation on routes between Australian and China, but the competition regulator remained con..
An American worker and German worker can each produce one car per month. An American worker can produce two tons of grain per month, and a German worker can produce one ton of grain per mont. Calculate what the optimal trade would be for these two co..
During World War 2 gasoline and other consumer goods were in short supply on the home front so that maximum resources could be diverted to the war effort. In order to cut back on the consumption of these many products, rationing coupons were issued t..
Should the overall white house proposal for 2016 budget be larger or smaller than proposed? By how much, and why? Should be budget be allocated differently among the different spending areas?
Suppose First National Bank holds $100 million in assets with an average duration of 4 years, and it holds $85 million in liabilities with an average duration of 3 years. Further suppose there is a 2-percentage-point increase in interest rates. Calcu..
MR/MC - Imperfect Competition: Remember that Imperfect Competition includes Monopoly, Oligopoly, and Monopolistic Competition --- CHAPTERS 12 and 13. Answer the next question on the basis of the following information for a firm operating in an imperf..
State owned, at least partly, MNCs are becoming common specially those from BRICS countries. What do you think is the future of these types of MNCs? Do they will over the traditional (privately held) MNCs? Explain.
Assume that the world consists of two large open economies _– the U.S. and Europe. Suppose that Europe decides to increase net taxes (T) to reduce its budget deficit. Using the large open economy model (LOE), illustrate and explain how this policy wi..
Dividend Problem: For the questions below, assume that the asset in question is a bond with a two year maturity which will pay $100 at the end of the first year and $100 at the end of the second year. Calculate your answers to the nearest cent. Calcu..
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