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List two conditions that a social planner uses to find the Pareto optimal allocation.
Steve Parkhill, Rogers’ Chocolate President, has asked you to make three priority recommendations to position the company for growth. What are your recommendations, and why to do you believe they warrant priority?
In the highly competitive TV manufacturing industry, a new innovation makes it possible to cut the average cost of a 50-inch plasma screen from $1,000 to $400.
Suppose that Portugal and Austria consider trading stained glass and fish with each other. Portugal can gain from specialization and trade as long as it receives more than of fish for each pane of stained glass it exports to Austria. Similarly, Aus..
A price-taking firm has a short run cost function SC(q) = 3q^2 + 18q + 600. Calculate the profit for this firm if the price is P = 72. Using either an integral or geometry, calculate the producer surplus for the firm at P = 72. Explain how the Produc..
A large bank has assets that include $100 million in vault cash and $1 billion on deposit at the Federal Reserve Bank. Its liabilities include $1 billion ($109) in checkable deposits. What are the excess reserves, if any?
Calculate the (point) price elasticity of demand when price is $100. Is demand elastic or inelastic? Calculate the (point) price elasticity of demand when price is $700. Is demand elastic or inelastic?
The U.S. economy fell into a recession in 2001 and then proceeded into a slow-growth recovery due to a decline in investment. Show how a change in investment can have a big impact on GDP causing a national recession. Illustrate by showing what it loo..
Why do brides spend so much money on wedding dresses, whereas grooms often rent cheap tuxedos, even though grooms could potentially wear their tuxedos on many other occasions and brides will never wear their dresses again?
Based on the best available econometric estimates, the market elasticity of demand for your firm’s product is -2. The marginal cost of producing the product is constant at $200, while average total cost at current production levels is $260. Determine..
How does AT&T's production function related to its marginal product of labor? How is AT&T's marginal product of labor related to the value of its marginal
One unit of labor can produce either 4 tons of papayas or 1 ton of bananas. Elucidate type of economic analysis is limited to testable, verifiable statements.
When the Bell System was broken up, the old AT&T was split into a new AT&T in addition to seven regional telephone companies. The specific reason for forcing the breakup was to increase the degree of competition in the telephone industry. Do you thin..
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