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A pretzel-stand owner in Chicago hires workers to make hot pretzels and sell them to customers. If the firm is competitive in both the market for pretzels and in the market for pretzel-makers, then it has
A. some control over both the price of pretzels and the wage it pays to its workers.
B. no control over either the price of pretzels or the wage it pays to its workers.
C. no control over the price of pretzels but some control over the wage it pays to its workers.
D. some control over the price of pretzels but no control over the wage it pays to its workers.
For each of the following situations, explain whether the demand curve for bonds, the supply curve for bonds, or both would shift. Be sure to indicate whether the curve(s) would shift to the right or to the left. What would be the effect on the equil..
A flood control project with a life of 15 years will require an investment of $250,000 and annual maintenance costs of $20,000. The project will provide no benefits for the first two years but will save $60,000 per year in flood damage starting in th..
A monopolist sells to two groups of people and practices price discrimination by charging separate prices for each group; students and non-students. This monopolist produces at constant marginal cost MC = 10. What is the price for each group if he ca..
The BlackBerry production function is Q = 2.83L1.52K0.82. Epple et al. (2010) estimate that the production function for U.S. housing is q = 1.38L0.144M0.856, where L is land and M is an aggregate of all other mobile, non-land factors, which we call m..
Discuss the individual firm's Marginal Cost, Averaged Cost and Average Variable Cost functions, and use this to calculate industry supply.
Suppose that the? long-run aggregate supply curve is positioned at a real GDP level of $14 trillion in base year? dollars, and the? long-run equilibrium price level? (in index number? form) is 120.
Explain the underlying basis for foreign direct investment, and discuss several factors that may contribute to it. What factors have likely contributed to the current U.S. net direct investment position?
How much money should you invest in a fund that will pay 8% compounded monthly, if you want to have $40,000 in the fund at the end of 20 years?
Illustrate what does GDP income leave out. Should a country meet additional quantifiable goals before being considered "developed".
Which one is more effective comparing with the tools of fiscal policy?
Illustrate what major legislative actions has congress taken As 1993 to reduce size of Federal deficit. Why process is politically painful to Congress.
If an industry's long run per unit costs are constant as its output increases then?
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