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"You have two economies, A and B. A is experiencing rapid technological innovation in all economic sectors between Year 1 and Year 2. B is suffering from major plant close downs in all economic sectors during the same period. Depict what is happening in A versus B using a PPF diagram, explaining the economics behind it."
A firm has the exogenous cost function C(Q) = 354Q-30Q^2 + Q^3. Compute the marginal cost function. Use calculus to find the value of Q at which average cost is minimized. Does this cost function satisfy the three assumptions made in class concerning..
What would the government likely challenge a merger where a firm with 20% share is attempting to acquire a firm with a 5% share.
Suppose there is a broad increase in the price of stocks that causes an increase in the real wealth of individuals. Consumer spending rises in response to the increase in wealth. In the short run, this will cause
A company decides to offer an average annual raise of 8%, although the current inflation rate is 10%. Each engineering manager decides on the best way to distribute the salary increase to his/her staff. However, if everyone gets an increase of 8%, th..
What is likely to happen to the savings that people have placed in their care? How will this impact a countries economic growth?
Analyze how a business manager might use CPI statistics for pricing decisions, production costs decisions, salary decisions, etc.
A small fitness center that offers only personal training services has the following demand and cost parameters: Demand: The fitness center has found that it has some discretion in pricing¬¬—that is, it can raise price marginally without drastic redu..
Let's assume you've already completed the input optimization and found your company's cost function as follows: C(Y)=Y^2 + 3Y. Write down the firm's profit function. Suppose that P=$9. Find Y* and show that at this level of output, marginal revenue i..
Recall the following equations which describe an ISLM economy: C(YT)= C1+b*(YT) I(r) = I1 d*r G = G1 , T = T 1 Md= L1+e*Yf*r r e a l M s = MP Suppose the economy is described by the following equations: C(Y −T)=40+0.7*(Y −T) I(r) = 300 − 30r G ..
Prices (fuel, water, grocery items, etc.) tend to rise in response to a natural disaster.
In the Columbia Gas of Ohio study that forecasted the demand for gas, the compnay developed the following coefficients for their equaion:
What provision of the U.S. Constitution has played the most important role in the development of civil rights policy?
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