Describe economic efficiency

Assignment Help Macroeconomics
Reference no: EM13177348

You are a member of the Metropolitan Taxi Commission, which sets taxi fares for your city. You have been told that long lines of taxis form at the airport during off peak hours. At peak hours, on the other hand, few taxis are available and long lines of passengers waiting for cabs. It is proposed that taxi fares from the airport to downtown be cut by 10 percent during off peak hours and increased by 10 percent during peak hours. How do you think these changes would affect the queuing patterns of taxis and passengers? Do you think the proposal is a good one from the passengers' point of view? From the cabbies' point of view? From the standpoint of economic efficiency? What do think if the taxi commission stopped setting fares altogether and allowed passengers and drivers to negotiate any price they wanted.

Reference no: EM13177348

Questions Cloud

What will happen to budget constraint if income increases : Suppose the price of housing stays at 2 and the price of food stays at 10. What will happen to her budget constraint if her income increase to 100? What happens to her budget constraint when her income decreases to $20.
Does budget constraint become steeper or flatter : Suppose the price of housing increases to 3, but the price of food stays at 10. Rewrite Jane's budget constraint and draw it on a graph. Now suppose the price of housing decreases to 1. Rewrite her budget constraint again.
What is the mean time between successive inquiries : Inquiries of the Poisson Portal interactive query system arrive at the central computer in a Poisson pattern at an average rate of 13 inquiries per minute.
What happens to budget constraint when m increases : Graph Jay's budget constraint when her income is 50, and the price of housing and food is 2 and 10 respectively. What happens to her budget constraint when M increases?
Describe economic efficiency : You are a member of the Metropolitan Taxi Commission, which sets taxi fares for your city. You have been told that long lines of taxis form at the airport during off peak hours. At peak hours, on the other hand, few taxis are available and long li..
Find the maximum rate of increase at p : Find the maximum rate of increase at P.
Find the equilibrium temperature : Assuming all the heat lost by the body is absorbed by the water , find the temperature of the body and of the water at any time. Find the equilibrium temperature?
Describe a favorite recreational activity in terms : Describe a favorite recreational activity in terms of its iterative components, such as solving a crossword or Sudoku puzzle or playing a game of chess or backgammon. Also, mention any recursive elements that occur.
Explain important criticisms of the forecasting : a. What are your views regarding economic forecasting? In particular, share any experiences you may have had with business forecasts for company budgets. b. Discuss some of the important criticisms of the forecasting.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Budget constraint and monthly reservations wage

Suppose that yi receives $ 60 per day as interest on inheritance and her wage is $25 per hour, and she can work a maximum of 16 hours per day at her job. draw her daily budget constraint.

  Essay on analysis of us multinational company revenue

Select a U.S. multinational company. In terms of currency denomination, discuss how the firm prices its revenues and costs.

  Illustrate what happens to the natural rate of unemployment

Illustrate what happens to the natural rate of unemployment and potential GDP if cyclical unemployment.

  Elucidate the impact of the global financial crisis

Elucidate the impact of the global financial crisis of 2008-2009 on the economies of industrialised countries and emerging markets. What effect do problems like these have on attitudes towards free trade.

  Protection on imports will have on factor prices

Show the effect that reducing protection on imports will have on factor prices. Show the effect of reducing protection will have on factor prices.

  Computing profit maximizing output level

Assume that the total cost function for a single firm in a purely competitive industry is given by following equation:

  Correlation between supply and demand function

Consider a product with a supply function Q 1  = β 0  + β 1  + u 1,  a demand function Q d i  =y 0 +u i d . Show that P i  and u s d  are correlated.

  Among which of these methods of encouraging growth

Among which of these methods of encouraging growth would you suggest to a newly industrialized economy.

  Compute grocery stores weekly demand forecast

Develop an exponential smoothing forecast with smoothing constants α =0.1 and 0.3. What would be the forecast for week 11?

  State history of the airline industry plus an industry over

state history of the airline industry, plus an industry overview, and a SWOTT analysis of the airline industry. Please include references.

  Assume a merger of company would simultaneously lessen

Assume a merger of company would simultaneously lessen competition and reduce unit costs through economies of scale.

  Provide examples of reverse logistics system

Give an personal example of a reverse logistics system you have experienced as a consumer. Were you satisfied with cycle time of process and what steps did the company take to guarantee your satisfaction.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd