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Company A has fixed expenses of $15,000 per year and each unit of product has a $0.20 variable cost. Company B has fixed expenses of $5,000 per year and can produce the same product at a $0.50 variable cost. At what number of units of annual production will Company A have the same overall cost as Company B?
Consider a city where a new automobile factory is scheduled to open. The factory will employ 1,000 people, and the city's employment multiplier for the automobile industry is 2.5. The city's elasticity of labor supply is 1.8, and its elasticity of la..
The annual percentage returns on common stocks over a 7-year period were as follows: Compare the means of these two population distributions. Compare the standard deviations of these two population distributions.
Suppose that Ellen has $I to spend on goods x and y: The price of good x is px and the price of good y is p y: Write down Ellen's budget line and draw it. Indicate the slope, as well as the vertical and the horizontal intercept.
Who was responsible for the global financial crisis of 2007-2009? Free-Market capitalism, government intervention, or a combination of both? Identify the causes of the crisis, the steps the private and public sector took to resolve it, and what leade..
What is contractionary fiscal policy? What is the purpose of contractionary fiscal policy? What are the possible contractionary fiscal policy solutions? What is built-in stabilizer in fiscal policy?
When a country’s nominal exchange rate appreciate, the price of A. that country’s goods abroad increases. B. That country’s goods abroad decreases. C. foreign goods sold in the country increases. D. That country’s goods produced and sold at home incr..
q. suppose that a ton of steel currently sells for 2000in united states and for euro2000 in germany. the exchange rate
List a few major challenges YOU THINK would impact the future economic well being of the United States. Explain why these are crucial challenges and how they can be overcome. Your response MUST make references to short term fluctuations as well as lo..
McNair's Wheel of Retailing is a widely used model to describe the way in which retail outlets develop over time. In what ways does this model reflect reality? Can you think of situations where retailers do not follow this model?
Assume that the market for wheat is perfectly competitive, with demand curve P = 5000 ? 0.01QD and a supply curve P = 1+0.1QS. Each identical wheat producer has a total cost curve given by T C = 1+Q+Q2 , which results in marginal cost of MC = 1 + 2Q...
There is currently 20 identical firms in a perfectly competitive market. Each firm has a cost function of the form: SC(q)=10q^2+200q+7000. The market demand is P= -4QD+3000. Explain why this is not a long run competitive equilibrium
Suppose a manufacturer is a monopoly. This manufacturer produces a good at MC = 4 and sells it to a retailer. The manufacturer has no fixed costs. The retailer is also a monopoly, and it sells the good bought from the manufacturer to consumers. What ..
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