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As one of the local economy stimulus package, all of you are well aware that the New South Wales (NSW) government introduced a Dine and Discover NSW scheme to support local businesses. The package is worth $100 out of which $50 can be spent on food such as dining in restaurants or purchasing takeaways.
Explain the efficiency consequences of such food voucher schemes under two scenarios below using well-labelled diagrams.
a) Friday Orders a Takeaway that is exactly $50
b) Crusoe orders a takeaway that is worth $70 so eventually ends up paying $20 from his own pocket
Two firms compete as a Stackelberg duopoly. The demand they face is P = 40 - Q. The cost function for each firm is C(Q) = 4Q. What are the profits of the two fi
1. Compare and discuss the major similarities and differences between business strategy and military strategy.
Consider a perfectly competitive market described by the supply function P = 10 + 0.3Q and demand function P = 60 - 0.2Q. Suppose the market is initially in equilibrium. If the government intervenes in the market and imposes a price restriction of P ..
Is it possible for a community hospital to use both a cost leadership and differentiation method with separate services in the hospital?
A no production economy has 2 consumers (A and B) who each consume two different goods (x and y). Person A is endowed with (120,270) and has a utility function Ua(Xa,Ya)=X^(2/3)Y^(1/3) . Person B is endowed with (480,180) and has a utility function U..
Read the following post and respond on it by either justifying the position cited in the post or raise criticisms.
Briefly explain whether you agree with the following statements: a. “ A bank that expects interest rates to fall in the future will want to hold more of rate -sensitive assets and fewer rate- sensitive liabilities” True or false b. “A bank that expec..
What is the effect of an increase in Government Spending on Bond Prices in the Short Run?
Discuss the importance of westward expansion since 1800.What were some of the key land acquisitions, and how was expansion carried out? What was federal policy towards Native Americans and Mexico, and how did it factor into expansion? Finally, what i..
How does the distinction between Total Utility and Marginal Utility help one answer this question? Might the Diamond-Water Paradox
The XYZ company is a producer of dishwashers. The company’s marketing department has estimated the following demand curve for the company’s best-selling model in one of its regions. If the government increases the sales tax by 1 percent, what will be..
The production function of a typical food manufacturer has been estimated to be q = K^1/3 L^1/2 where K denotes capital and L denotes labor. In the short run, the firm’s capital is fixed at K ¯ =1000. Derive the short run cost function of the firm. D..
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