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Do you think free agency increases competitive balance? Why or why not? Explain using economic concepts.
Explain the difference between operating decisions and planning decisions. Explain the following costs and observe carefully the difference between each one.
Between January 2010 and January 2013, U.S. employment increased by 4.9 million workers, but the number of unemployed workers declined by only 2.7 million. How are these numbers consistent with each other? Why might one expect a reduction in the numb..
Explain how competition in markets can often provide incentives for the invention of new technology. Using the ideas of social benefit and privaate benefit, explain the concept of a positive externality. Why does new technology have positive external..
A monopolist with total cost function T C = 30Q + Q^2 is facing a market demand given by P = 150 − Q. a) What is the optimal quantity and price the monopolist will set on this market? (Q=30, P=120) b) What quantity and price would this firm set if it..
Richland’s real GDP per person is $10,000, and Poorland’s real GDP per person is $5,000. However, Richland’s real GDP per person is growing at 1 percent per year, and Poorland’s is growing at 3 percent per year. Compare real GDP per person in the two..
Kermit is considering purchasing a new computer system. The purchase price is $130,725. Kermit will borrow one-fourth of the purchase price from a bank at 10 percent per year compounded annually. The loan is to be repaid using equal annual payments o..
Consider the project balances in Table P5.19 fro a typical investment project with a service life of four years. Determine the interest rate used in computing the project balance. Reconstruct the original cash flows of the project.
Bridget has a limited income and consumes only wine and cheese. Her current consumption choice is four bottles of wine and 10 pounds of cheese. The price of wine is $10 per bottle and the price of cheese is $4 per pound. The last bottle of wine added..
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, ..
A decrease in the investment rate: Suppose a country enacts a tax policy that discourages investment, and the policy reduces the investment rate immediately and permanently from s to s'. Draw a graph showing how output evolves over time (put Y_t on t..
Should price increases for products in demand be allowed during extreme times of demand ( e.g.; bags of ice, water or hotel rooms during a hurricane crisis)? Defend your position using economic principles?
If the fixed costs for a perfectly competitive firm increase, what is the likely impact be on the price the firm charges, the output it produces and the economic profits it earns in the short run, all else held constant?
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