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Are the following statements true or false? Explain your answer.
1. If the owner of a business pays himself no salary, then the accounting cost is zero, but the economic cost is positive.
2. A firm that has positive accounting profit does not necessarily have positive economic profit.
3. Industry X is characterized by perfect competition, so every firm in the industry is earning zero economic profit. If the product price falls, no firms can survive.
Suppose a consumer live two periods, in the first have an income m1 = 30 and in the second an income of m2 = 20. Suppose the interest rate is 10% and can borrow and lend at that interest rate. What is the maximum quantity he can consume in the second..
Find mathematically and graphically the Equilibrium price and Quantity? If the price is 10 Riyal, what kind of surplus we will have and how much is it? If the equilibrium price increased by one Riyal, what will be the quantity demanded?
What constraints does the consumer who follows Biblical principles have on his consumption that a non-Bible believing consumer would not have?
You are an assistant to a senator who chairs an ad hoc committee on reforming taxes on telecommunication services. Based on your research AT&T spends $15 million on related paper work and compliance costs. Depending on the locale, telecom taxes can a..
The coconut oil demand function is Q=1,200-9.5PC+16.2Pp+0.2M where Q is the quantity of coconut oil demanded in thousands of metric tons per year, PC is the price of coconut oil in cents per pound, Pp is the price of palm oil in cents per pound, and ..
On Friday nights, patients arrive at the emergency room at Mercy Hospital following a Poisson distribution at an average rate of seven per hour. Assume that an emergency-room physician can treat an average of three patients per hour and that the trea..
Whenever a partnership agreement is silent on this allocation of profits and losses, profit and losses are divided in the same proportion as capital contributions. Whenever a partnership agreement allocated losses in unequal proportions, but is silen..
What are the steps that the Fed can do to stimulate the economy? What are problems with those types of policies? How do you know that they will work?
they added five workers, and productivity also increased by 50,000 pages per day. Copiers cost about twice as much as workers. Would you recommend they hire another employee or buy another copier?
Read the Making the Connection short case titled Why Did Iceland Recover So Quickly from the Financial Crisis? Then post your posting this week beginning to discuss what you've read and watched in the video.
Suppose, as in the federal income tax code for the United States, that the representative consumer faces a wage income tax with a standard deduction. That is, the representative consumer pays no tax on wage income for the first x units of real wage i..
Summarize the controversy over the value of the Chinese yuan in foreign currency markets. Is China still using central bank foreign exchange policy to maintain the value of the yuan? What is the current policy of the United States on this issue?
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