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1. What are the production costs of your economics class? What are the fixed costs? The variable costs? What's the marginal cost of enrolling more students?
2. Suppose all your friends offered to help wash your car. Would marginal physical product decline as more friends helped? Why or
why not?
3. How many batteries will Tesla want to produce in its new gigafactory?
4. Owner/operators of small gas stations rarely pay them- selves an hourly wage. How does this practice affect the economic cost of dispensing gasoline?
5. Corporate funeral giants have replaced small family-run funeral homes in many areas, in large part because of the lower costs they achieve. What kind of economies of scale exist in the funeral business? Why doesn't someone build one colossal funeral home and drive costs down further?
The price of basketballs is $90, the wage rate is $5, and the rental rate for capital is $10. What is the short-run profit maximizing level of labor demand if capital is fixed at 40 units What are the long-run profit maximizing levels.
A firm is considering three mutually exclusive alternatives as part of a production improvement program. The alternatives are as follows: A B C Installed cost $10,000 $15,000 $20,000 Uniform annual benefit 1,625 1,625 1,890 Useful life in years 10..
Suppose initially (period 0) the economy is endowed with $5 (billion) of capital stock and 10 (thousand) workers (let's ignore the units). We know that saving rate s is 0.15, population growth rate n is 0.01 and depreciation rate d is 0.09. Suppos..
On March 18, 2024 the Happydale Farm buys a new tractor that costs $17831 but it also costs $1424 for delivery and $3123 for the cultivating implements that are needed to make this ready for service. It is put into service on March 22, 2024
Solve the problem for I (income). The impact on income of an increase in government spending equal to 100. Using the original data, compute the impact of a decrease in taxes equal to 100. Explain why the results are different.
In what ways does the organization demonstrate successful collaboration? Identify at least two types of hardware and two types of software used by this organization.
compute the three-firm and four-firm concentration ratios for each sector, and rank the sectors by degree of industry concentration.
Average variable cost at this output level equal $15 per unit, and average fixed costs equal $5 per unit. What is the firm's profit-maximizing (or loss maximizing) output level What is the amount of its economics profits (or losses) at this outpu..
a construction company is considering procuring one of two types of heavy construction equipment a and b. each type of
Assume that Country A has a population of 500,000 and only produces one good- car. Country A produces 100,000 cars per year. The people in Country A purchase 90,000 cars, but there are not enough cars to fulfill all the demand.
You are told that the multiplier for government spending is 2 and that the effects of the increased government spending are immediate. What policy actions can be taken to put GDP back on target each period?
Suppose instead that you (the lender) have no information on the type of borrower and you have to charge a single interest rate to all borrowers. Also assume that the probability that you will end up with each type of borrower is equal (e.g. 1/3 ..
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