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Assume that labor demand is inelastic enough such that there are two equilibria. Explain how a complete and perfectly enforced ban on child labor might improve conditions for families according to this model.
Suppose you have been tasked with regulating a single monopoly firm that sells 50-pound bags of concrete. The firm has fixed costs of $10 million per year and a variable cost of $3 per bag no matter how many bags are produced. You find out that if yo..
If the economy is operating at a point less than full employment (as it is now), what would we want to see happen to GDP? For right now, let's just look at the C (consumption) component of our GDP equation. What would we want to see happen to consume..
Suppose the U.S. and Mexico both produce 2 goods, tablets and cereal, using 2 inputs, capital (K) and labor (L). The production of tablets is capital-intensive, and that of cereal is labor-intensive. The U.S. is a capital-abundant country, and Mexico..
You’ve recently learned that the company where you work is being sold for $290,000. The company’s income statement indicates current profits of $9,000, which have yet to be paid out as dividends. Assuming the company will remain a “going concern” ind..
If there are three firms in an industry with market share of 55%, 20%, 15%, and 10%. What would be the HHI index for this industry? How would you classify this market?
St. Joseph's school has 1,200 students, each of whom currently pays $8,000 per year to attend. In addition to revenues from tuition, the school receives an appropriation from the church to sustain its activities. Sensing resistance to the idea of rai..
why the enrollment in colleges also universities increases at times of economic recession
What is the shadow price of labor when output is maximized subject to a labor constraint? In a perfectly competitive market, what curve can be drawn from the firm’s short run supply curve? When demand is perfectly elastic, what portion of costs from ..
You manage a company that competes in an industry that is compromised of five equal-sized firms.A recent industry report indicates that a tariff on foreign imports would boost industry profits by $ 30 million
Explain dominant strategy and Nash equilibrium. If a game has a dominant strategy equilibrium, does it have a Nash equilibrium? If a game has a Nash equilibrium, does it have a dominant equilibrium?
Describe atleast 4 ways in which a firm can limit a worker's shirking. Ground your answer in an explicit theoretical framework(that you clearly state) that explains worker shirking behaviour.
Assume a specific factors economy produces two goods, cloth and food, and that when representing the output of this economy graphically, cloth is on the x-axis and food is on the y-axis. Movement of labor from a Foreign country to the domestic (Home)..
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