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In what kind of economy is a central planning board or commission typically used to answer the basic economic questions?
“Unless there are economies of scale in the production of government goods and services, they should always be provided by the smallest available government units (that is, the lowest-level government in a federal hierarchy.)”
Suppose that the reserve requirement is 12 percent and the balance sheet of the People's National Bank looks like the accompanying example.
Which is more economical, heating with natural gas or with electricity? Assume that both the equipment and building have a 25 year life, that the salvage value is 0 for both and the interest rate is 8%
A monopolist can produce at constant average and marginal costs of AC = MC = 5. The firm faces a market demand curve given by Q = 53 —P. The monopolist's marginal revenue curve is given by MR = 53 - 2Q. Calculate the profit-maximizing price-quantity ..
If the President imposes tariffs (taxes) on imported steel, how does this affect domestic steel-makers? How does this affect the domestic appliance-manufacturers? [Hint: Draw the S&D for “imported steel”, and draw a separate S&D for “local steel”. An..
Explain what effect a reduction in the U.S. interest rate would have on the exchange rate?
The stockholders have invested another $600,000. The firm's retained earnings total $1.2M. The return on equity is estimated to be 11%.
In the Jehle and Reny textbook (which I should add I have not read much of beyond a few sections of interest), a theorem stating that there is always a (mixed) Nash equilibrium in finite strategic form games is proven. Similarly, I would also suspect..
Electric Company is considering the purchase of a hillside ranch for possible use as a windmill farm sometime in the future. The owner of the 500-acre ranch will sell for $3,000 per acre if the company will pay her in two payments - one payment now a..
Flotation costs on equity is 15%, on debt is 5%, and on preferred stock is 7%. What is Slopes United's weighted average flotation cost?
The marginal product of any input in the production process is the increase in the quantity of output produced from one additional unit of that input. As a manager, what are some practical things you could do to raise marginal product per employee th..
A car dealership is considering lowering the price of its min vans to promote sales. However, it worries that this will reduce sales of it station wagon autos. It finds the cross product of demand to be 1.5. Are its concerns legitimate? Explain.
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