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Suppose that a given firm experiences decreasing marginal product of labor with the addition of each worker regardless of the current output level. Average total cost will be A) rising at al points B) falling at all points C) constant D) U-shaped
if a men's store sells 30 ties a day with a $5 price, but sold 50 ties per day when price dropped to $3, what's the absolute value of the price elasticity of demand? If a good has a price inelastic demand, what are the characteristics of this?
elucidate what will be the effect on the world price of wool. How does the marginal revenue to Australia from an extra unit of wool relate to the price of wool.
After one year, your original $200 in savings account became $212.64. Find the effective rate of interest?
A street vendor reduces the price of gelato from $3.50 to $2.75, the number of gelatos sold per day rises from 600 to 750. What is the price elasticity of demand for gelato?
Now suppose that the interest rate falls to 50 percent, and the household decide not to borrow or lend at all. Is the household better off or worse off with the higher interest rate?
Assuming that prices are set competitively (i.e. set equal to MC of producing services), show in a supply-demand graph how we could measure the “efficiency loss” (or deadweight loss) associated with health care over-consumption
Moral hazard and equity finance. Be familiar with the so-called principal-agent problem and ways that it can be/has been addressed. Understand the free-rider problem associated with monitoring .Be able to explain how compensating top management with ..
Suppose that you own a 25 year old movie theater in Micropolis. It has 6 screens and a concession stand. Across town there is a 7 year old movie theater with 4 IMAX screens and 20 more regular screens. Do you think that your firm (the small theater) ..
Suppose that your marginal federal income tax rate is 30%, the sum of your marginal state and local tax rates is 5%, and the yield on thirty-year U.S. Treasury bonds is 10%. You would be indifferent between buying a thirty-year Treasury bond and buyi..
For each of the following scenarios determine whether the good is exclusive, rival, both, or neither.
Purpose of the business in terms of the product or service you intend to provide through your business
PhilaU Equipment Co. has a CNC machine that was purchased 5 years ago for $150,000 plus $25,000 of installation costs. It has been depreciated as a MACRS-GDS 5-year property class. It has an estimating remaining life of 8 years. O&M costs were $10,00..
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