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Question 1: Explain why monopoly sellers usually offer discount prices to buyers who are willing to mail in a rebate coupon or endure some other type of inconvenience.
Question 2: Discuss why traditional economic models find it difficult to explain why people would pay to attend weight-loss camps that restrict their daily calorie intake.
What quantity of BMWs should the firm sell in each market, and what should the price be in each market? What should the total profit be?
A new bridge is built, and a person now makes 35 trips per month to the center of the town rather than his or her former 25 trips per month. The time cost of the trip plus wear and tear on the person's auto declines from $4.75 before the bridge to $3..
In a perfectly competitive market for coal, consumers’ benefit function from consuming tons of coal , is given by B(Q)= -.25Q^2+240Q In addition, the coal producer has a cost function given by: ?C(Q) =.1Q^2 +2Q. Suppose the government imposes an ad v..
The price of good 1 is initially at $1, and the price of good 2 is initially at $2, with $24 avaiable to spend. The price of good 2 increases to $4. If Duane’s utility function is U(X1,X2)=min(X1,2X2), then what’s the substitution effect and income e..
1. What advice would you give to May Phelps? 2. How would you enhance the power base of May Phelps?
Suppose the Fed conducts an open market purchase by buying $10 million in Treasury bonds from Acme Bank. Sketch out the balance sheet changes that will occur as Acme converts the bond sale proceeds to new loans.
A large induced-draft fan is needed for an upgraded industrial process. The motor to drive this fan is rated at 100 horsepower, and the motor will operate at full load for 8,760 hours per year.
How agencies involved in the Affordable Care Act compete vertically and horizontally for funding, how do they ensure for ACA?
A factory and an amusement park are both located next to a residential neighborhood, creating a noise problem that the local government is considering regulating. The amusement park’s total cost function for reducing the noise level by D decibels is ..
We sometimes need to find how long it will take a sum of money (or anything else) to grow to some specified amount. For example if a company's sales are growing at a rate of 20% per year, approximately how long will it take sales to triple?
As a price-taker, assuming there are no externalities, the market equilibrium is also the efficient outcome.
Assume you are a farmer who grows corn and cotton. In the past, you have planted half of your land in corn and half in cotton. In recent years, the government has mandated that gasoline contain 10% ethanol (fuel made from corn). Which of the followin..
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