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The Cold War was about 'Brink Events', incidents which took the world to the brink of nuclear war. The East-West confrontation over Berlin and Cuba were both brink events which could have resulted in global destruction, but actually had the effect of lessening US-Soviet tensions. How?
Consider a hypothetical market for bottled water where the market demand and market supply equations are: QD = –50P + 1540 and QS = 100P + 200, Now, suppose the change in standards results in a new market supply of QS’ = 400P – 350, with no change in..
In the 1920’s, General Motors purchased its auto bodies from an independent firm, Fisher Body. GM decided to build a new plant and, in order to improve the reliability of supply and also to decrease shipping costs, GM asked Fisher Body to build a new..
Describe the structural/functional differences between the models of the Capitalist (Political) Economy and the Feudal (Political) Economy
Economists argue about the potential benefits and cost of diversification. For example while diversification can certainly help company to promote new products at the same time through the merger of two firms it can be more expansive to develop commu..
What is the effect of capital goods on capital stock for example if the price of capital god dropped what effect would this have on capital goods and capital stock ?
Consider a supply and demand model of the wholesale gasoline market. If a tropical storm forces some refineries to temporarily withdraw from the market, what curve shifts and in which direction?
An injection molder is purchased for $500,000 for a large scale commercial operation. Its expected life is production of 2 million plastic wheels. Its salvage value is $1,000. Using the units of production method, calculate the depreciation rate per ..
Home price escalation in the U.S. during 2005 fuelled booms in:
Bill gets utility from consuming food (F) and clothing (C) represented by the following utility function: U(F,C) = FC + F. The price of food is $1 per unit and the price of clothing is $2 per unit. Bill’s income is $22. Find the utility maximizing ch..
This question explores the quasi-linear utility function. Consider Thomas who has preferences over food, QF, and clothing, QC. His preferences are represented by. Determine whether food and clothing are normal or inferior goods for Thomas. Prove your..
Suppose that society decided to reduce consumption and increase investment. How would this change affect economic growth? What groups in society would benefit from this change?
q1. explain why each of the following statements are false. for each write the correct statement.a. a monopolist
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