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A company invested $450,000 ten years ago in a new technology that is now worth $1,000,000. What rate of interest did the company earn on a simple interest basis?
A monopsony faces a supply curve of p=10+Q. What is its marginal expenditure curve? If the monopsony has a demand curve of p=50-Q, what are the equilibrium quantity and price? How does this equilibrium differ from the competitive equilibrium?
Assume that b=1 and that initially the real interest rate is equal to the marginal product of capital at 4%. As well, assume that v=1/2 and that the inflation rate last period was 2%. If the housing bubble busting causes the share of output of invest..
Construct an 95% confidence interval of the proportion of middle-income Americans who actively participate in the stock market.
You have been asked to discuss the differences between the microeconomic definitions of supply and demand and the macroeconomic differences of aggregate supply and demand. Discuss what determines supply and demand and aggregate supply and aggregate d..
What level of unemployment to you constitutes a level of “full employment?” How do you think the general public might misinterpret this term as reported in the media?
Val-lok Industries manufactures miniature fittings and valves. The company bought a new machine with $8,000 to improve process efficiency. After 3 year useful life, it will be sold out for $2,500. Prepare a table showing the depreciation expense and ..
The market equilibrium wage is currently $12 per hour for hairdressers. Legislation imposed a minimum wage of $11.50 per hour. If there are no changes to either the demand or supply for hairdressers when imposed, the number of hairdressers will be?
A manufacturer of small plastic injection molded parts (caps, closures, fitments and pipettes) was experiencing static electricity problems during various steps in their molding and handling operations. The static caused the plastic parts to cling to..
Consider the market for carbonated water and suppose that demand is given by D(p) = 100 – 5p There are only two firms producing carbonated water, each with the same constant unit cost c = 2. What are the equilibrium prices and quantities if the firms..
Suppose that we have an economy with four workers. Paris H. can teach 3 yoga lessons or make 20 lattes a shift. Kim K. can teach 2 yoga lessons or make 8 lattes a shift. Mike S. can teach 1 yoga lesson or make 40 lattes a shift. And Pauly D. can teac..
If you receive an inheritance of $10,000 today, how long do you have to invest it at 8% per year to be able to withdraw $2,000 every year forever? Assume the 8% per year is a return that you can depend on forever.
This theory of consumer choice is a branch of microeconomics which relates to what is called to consumers demand curves and to expenditures of consumption.
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