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Identify the criteria for a "shut down" and apply it to the following scenario: Suppose a firm sells 500 units per month at $50 per unit. Its fixed costs per month are $30,000 and its variable costs per month are $15,000. Would you advise this firm to continue operating in the short run? Why or why not?
Suppose as a manager of a profitable department store you are confronted with a pricing problem. You have two types of customers: a high-end type that willing to pay a price of $ 25 for a pair of Levis Jeans and a low-end type customer that are willi..
Assume that a nation’s marginal propensity to consume is 0.9, and that its potential GDP exceeds its actual real GDP by $5000. By how much should that nations government change taxes in order to completely close that GDP gap?
What is each fisherman's profit-maximizing output now. Find the market price and the total output.
q1. explicate four of problems with the argument which trade protection is needed to protect american jobs.q2.
There are only two consumers, Ann and Bob, and only two goods, the quantities of which are denoted by x and y. Ann owns the bundle (15, 25) and Bob owns the bundle (15, 0). Determine each consumer’s demand function. Determine a Walrasian equilibrium ..
The grounds, a coffee shop, has daily averaged fixed costs of $273 each day and unit costs of $0.85 per cup of coffee. The coffee sells for $2.15 per cup. what is the cost function? what is the revenue function?
Assume a model where the currency ratio is 0.4 (c = 0.4), the excess reserve ratio is 0.2 (e = 0.2), and the required reserve ratio is 0.1(r = 0.1). What is the money multiplier? What change in the money supply results from an open market sale of $25..
Suppose there are 81.0 million people not in the labor force; 154.0 million in the civilian labor force, and 140.9 million employed. Based on these numbers, what is the unemployment rate?
Expansionary policy is used to fix an expansionary gap. If US prices are relatively high, the quantity of US goods demanded is high, aote. The short-run AS curve overall has a positive slope in part because of the misperceptions.
Assume two firms sell differentiated products and face the following demand curves: Derive the best response function for each firm. Find the equilibrium set of prices in this market.
What are the two most important things people consider when they make economic choices? How does getting something for free impact how individuals may value that item?
On hearing that you are undertaking a subject in accounting as a part of your degree you are approached by a friend, Michael Graham, to give him advice regarding the potential purchase of a business.
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