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Explain how a price increase could be better for society than not raising the price of a product or service.
Why does central planning not work efficiently?
What is the profit maximizing condition for the firm when choosing the optimal level of labor? Write down the condition in REAL terms. Suppose the Labor Supply Curve is given by Ns = 92 + 6w. (w is the real wage). Obtain the Equilibrium real wage and..
Assuming that budget stays same except for interest on debt for 10 years, what will be accumulated debt? What will size of budget be after 10 years.
Explain what occurs when a new technology makes another one obsolete in terms of economic profit.
The setup cost is $100 per order up to 99. For orders of less than a pallet, the setup cost is $200. The setup cost for pallet loads is $1000. The holding cost is 1% of the purchasing cost per item per week.
During the working life, how do you graph that without knowing more information.
Compute the equilibrium quantity and price and Calculate the consumer and producer surplus.
According to the augmented expectations hypothesis, if the yield on both one year bonds and two year bonds are the same, would you expect the one year yield in one year’s time to be higher, lower, or the same? Explain your answer.
Now that you are an expert on elasticities, what do you think would be the best time of year to raise prices, and why? What do you think the elasticities are in the flower business? Use graphs and hypothetical tables to support your answer.
Assume that apples are an inferior good. Draw a perfectly competitive market for apples and a firm selling apples in the long run equilibrium where price is $10 and the firm’s equilibrium quantity is 50. EXPLAIN what happens in the short-run if coust..
Suppose that Congress enacts a lump-sum tax cut of $750 billion. The marginal propensity to consume is equal to 0.75. Assuming that Ricardian equivalence holds true, illustrate what is the effect on equilibrium real GDP.
You are the manager of a monopoly, and your demand and cost functions are given by P= 200 - 2Q and C(Q)= 2000 + 3Q^2, respectively. what price-quantity combination maximizes your frm's profits?
CER defaults on its loan payments to Bank One. Can Bank One attach the 100 stereo systems CER bought from Stereo Manufacturer.
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