Describe the substitution and scale effects

Assignment Help Business Economics
Reference no: EM132136907

Suppose Oregon proposes indexing the minimum wage to inflation. Describe the substitution and scale effects you anticipate with this policy? (In your response, assume that the minimum wage is an effective price floor and that both factor and product markets are perfectly competitive.)

Reference no: EM132136907

Questions Cloud

Organizational structure and employees : Why you chose this customer Store location and brief history and Organizational Structure and Employees and Overall store atmosphere.
What is the primary function of mechanics lien : Which thing does a potential lien claimant need not consider? What is the primary function of a mechanics’ lien?
An impact on the human condition for centuries : The written word has had an impact on the human condition for centuries. We have all been touched in some way or another by literature.
Analyze how personal experience affects ones interpretation : Analyze how personal experience affects one's interpretation of humanities texts.
Describe the substitution and scale effects : Suppose Oregon proposes indexing the minimum wage to inflation. Describe the substitution and scale effects you anticipate with this policy?
Do you think that the taxicab industry in large cities : Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?
Four components of the international promotional mix : According to Lascu, the four components of the International Promotional Mix include all of the following EXCEPT:
Discuss five key aspects of latin american consumers : Briefly discuss five (5) key aspects of Latin American consumers that CU should consider in the Raphie marketing plan.
Vanguard method as opposed to the traditional managerial : Vanguard Method as opposed to the traditional managerial thinking typically found in many organisations ( Jaaron and Backhouse, 2012).

Reviews

Write a Review

Business Economics Questions & Answers

  Effect on gold consumption also mining of an increased

Illustrate what is now the effect on gold consumption also mining of an increased utilize of gold as money.

  Explain the specific business decision that management made

Explain the specific business decision that management made after computing this value. Calculate amount firm would need to set aside at the end of each year.

  Offer tickets to a movie at zero marginal cost

Suppose the demand for a movie ticket can be written as: If the cinema can offer tickets to a movie at zero marginal cost and can verify the purchaser’s age, what prices will be charged?

  What is represented in the price of a good or service

What is represented in the price of a good or service?

  Lowers the present cost of future consumption

"A higher interest rate lowers the present cost of future consumption." "A higher interest rate raises the future cost of present consumption."

  Current account deficit

When a profitable Japanese-owned company owns a car factory in the U.S. and sells the cars within the U.S., this [increases/decreases/does not change] the U.S. trade deficit and [increases/decreases/does not change] the U.S. current account deficit.

  Salesperson can put in regular effort

A salesperson can put in regular effort (resulting in a 40% chance of sale) or high effort (60% chance of sale). If high effort costs the salesperson $20 more than regular effort, how large of a per-sale bonus is required to encourage high effort? Th..

  Economic activity-total benet and total cost functions

Suppose for an economic activity, your total benet and total cost functions are B (x ) = 654x - 40x2 and C (x ) = 110x +120x2 , respectively. The corresponding marginal formulas will be MB (x ) = 654 - 80x and MC (x ) = 110 + 240x . What is your best..

  Particular type of discrimination

Provide an example a type of discrimination that will not eventually be eliminated by competition in a market.

  What is the annual coupon payment

Consider a 30 year $10,000 (risk-free) bond with annual coupon rate of 4.25%. What is the annual coupon payment?  If the yield to maturity on the bond is 4%, what must be the market price for the bond? Is the bond selling at a discount of (below) or ..

  Compare to the profit maximization condition

How does this compare to the profit maximization condition for perfectly competitive markets?

  Price of transportation services increases

Based on surveys conducted by the BLS, the CPI basket assigns a weight of approximately 15% to transportation spending. Suppose you walk to your workplace every day and you do not use any other means of transportation. With everything else the same, ..

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