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Why do we have government? What is the reason for its existence? Is there any value to us as citizens for it? Another way to look at it, is what does government or what should government produce or create for us, its citizens?
The annual demand for a product has been projected at 2,500 units. This demand is assumed to be constant throughout the year. The ordering cost is $30 per order, and the holding cost is 40 percent of the purchase cost. Currently, the purchase cost is..
Two countries, Canada and Japan, produce two goods, Phones (P ) and Phone Apps (A), using two factors, Skilled labor (S) and Unskilled labor (U). Phones are Skilled-labor intensive and Apps are Unskilled-labor intensive. Show how the PPF changes in e..
In a world of completely selfish individuals, if we could measure each person's marginal value for his or her own medical care, what conditions must be met in order for the healthcare market to be at an optimal level of output?
A perfectly competitive firm has the cost curves drawn in the following diagram. If the firm's output sells for $16 per unit, what is the firm's profit-maximizing output? Why?
Discuss problems of measuring productivity in actual work situations. How might productivity be measured for each of the following industries?
You can ask anyone the question. What would you rather have? Inflation? Or being unemployed? The resounding answer would be from everyone that they would rather be employed with a higher inflation than no job and a higher inflation rate.
Discuss the differences between accounting profit and economic profit. What does it mean when a company makes zero accounting profit? How about zero economic profit?
Suppose government purchases amount is $3.5 trillion, transfer payments amount is $0.5 trillion, net interest payments are $0.25 trillion and tax revenue is valued at $2 trillion. calculate the amount of the government deficit; calculate the primary ..
Suppose USA has 2,400 units of labor available. It can produce two goods, apple and bananas. The unit labor requirement in the apple production is 3, while in banana production, it is 2. Suppose Canada has a labor force of 800. Graph Canada's product..
(Balance of Payments) Explain where in the U.S. balance of payments an entry would be recorded for each of the following: A Hong Kong financier buys some U.S. corporate stock. A U.S. tourist in Paris buys some perfume to take home.
What is the marginal product of the third worker? What is the marginal revenue product of the sixth worker? What is the marginal cost of the fourth worker?
The market for DVD rentals in Dallas, Texas, is estimated to be P= 10-0.002Q. Marginal cost (MC) of rental is equal to $2. Where PD is the price (per DVD in $) for DVD QD is quantity of weekly rental. The marginal revenue (MR) for rental is equal to
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