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Edward the entrepreneur takes two hours to cut a lawn, and he cuts 1,000 lawns per year, he use solar powered equipment thw will last forever and can be sold for $20000. the interest rate is 10 perent given his current output level, compute his marginal cost and average cost of cutting lawns
Opportunity cost – faced by any company or country or government in choosing something and leaving other alternates For example – delay in setting up broad band in Australia or not building up infrastructure like high speed rail, roads, housing or po..
to the permanent income hypothesis, households will tend to react to a temporary tax cut by assuming the new tax level will be permanent.
People expected that a tax cut was temporary, then this fiscal policy's effect on the economy will tend to be and the economy is at equilibrium at Point B. What would expansionary fiscal policy do
What is the new equilibrium price and what is the new equilibrium quantity, how many bags were oranges being overproduced before?
Why do you think firm 1's marginal cost is lower than firm 2's marginal cost? Determine the current profits of the the two firms. What would happen to each firm's current profits if firm 1 reduced its price to $6 while firm continued to charge $8?
How a competitive market arrives at equilibrium and why the price of tomatoes has risen - Discuss the factors that affect the price elasticity of demand as they apply to tomatoes and make a suggestion based on your appraisal as to the likely price..
The real risk-free rate of return has been estimated to be 2 percent under current economic conditions. The 30-day risk-free rate (annualized) is 5 percent. Twenty-year U.S. government bonds currently yield 8 percent.
(library research) Explain (a) in what way the US trucking industry exemplified the capture theory hypothesis of government regulation prior to the passage of the Motor Carrier Act of 1980 and (b) the result of hte passage of the Motor Carrier Ac..
If the nominal GDP is $559 billion in the base year, and it rises to 577 in year 1, and 605 in year 2, what is the real GDP in each year, given that the price index has risen from 100 in the base year to 104.5 in Year 1 and up to 108.3 in Year 2?
A domestic shoe company distributes running shoes and tennis shoes for $95 per pair. The marginal cost of producing a pair of running shoes is $60, and the marginal cost of producing a pair of tennis shoes is $45.
Who has a comparative advantage in producing wine and who has a comparative advantage in producing schnitzel?
The demand for illegal drugs is inelastic. Much of the expenditure on illegal drugs comes from crime. Assuming these statements to be correct, What is the most effective way of decreasing the quantity of drugs consumed
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