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You are considering selling your house. Your reservation value is $100,000. Your real-estate agent tells you that there is a 0.4 chance a random buyer will pay $150,000, a 0.25 chance the buyer will pay $200,000, a 0.1 chance the buyer will pay $250,000, and a 0.25 chance it will not sell. If you must commit to a posted price, what price maximizes profits?
Identify a company in your local or generalized area that you would classify as a monopoly. Explain the key reasons why you classified the company as a monopoly, and state how the company operates relative to at least two (2) characteristics of that ..
An enginnering student has just finished the freshman year andhas received an offer of $20,000 per year in a full-time job, withprospects of salary increasing 3% per year until retirement after33 years. On the basis of economics alone, should the stu..
Examine the impact on a small country following an outward flow of immigrants that decreases its labor force. Assume that land is specific to agriculture and capital is specific to manufacturing, while labor is free to move between the two sectors. A..
The first option is to start an event planning business as a self-employed. Based on business plan, she computed the following annual estimates using very conservative assumptions: Agatha will operate the business by herself. She does not plan to hir..
Suppose the Fed tries to prevent the increased government demand for loanable funds from raising interest rates by increasing the supply of loanable funds through and expansion of commercial bank loans. Will this Fed policy succeed in preventing inte..
Assume a firm both sells its products and purchases its resources in purely competitive markets. Under the above assumption, state the criterion (necessary and sufficient condition) for a firm to employ its resources in such a manner as to minimize i..
A manufacturing company wants to decrease its labor costs by substituting skilled welders with robot welding machines. If the company marginal tax rate is 36% is the investment a good idea?
Present in detail the following two theories/models associated with “post-Heckscher-Ohlin” trade theory. In the case of each theory/model, be sure to indicate important characteristics of real-world international trade that the theory/model is attemp..
In the 1970s the Ford Motor Company sold its sub- compact Pinto model with known design defects. In particular, the gas tank’s design and location led to rupture, leaks, and explosion in low-speed rear- impact collisions. Fifty-nine people burned to ..
Required all pharmaceutical firms to sell their drugs in a competitive market with no ability to patent their break.
Why are people who possess specific human capital less likely to change jobs, other things being equal, than those who possess general human capital? Does this imply that people who possess large amounts of specific human capital will never migrate..
In recent years, both the United States and Greece have experienced increases in government debt and a significant economic downturn. In what ways were the two situations similar? In what ways were they different? Why did the two nations have differe..
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