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Identify the four basic market structures, in order, from the best for consumers to the being the best for producers.
Suppose that in an hour Chip can gather 8 pounds of fruit or 4 pounds of nuts. In an hour, Monk can gather 9 pounds of fruit or 3 pounds of nuts. Who should specialize in gathering nuts? Monk or Chip? both? or neither?
Applying the Bond Market Model explain completely how each of the following would influence the price of bonds and interest rates (Explain your answers using supply and demand graphs):
A large multinational restaurant chain has introduced gourmet burgers in addition to the fast-food style hamburgers it has always sold. We consider here the actions of a single franchise’s store and its pricing policy.
A firm has a production function represented by: q=L^(.75)K^(.25). Find a function for how much capital and labor a firm should hire to produce a given level of production in terms of the price of labor, w, and the price capital, r.
As the number of firms in an oligopoly increases,
An investment that brings $40,000 two years from today is worth what present value in terms of today’s money with an interest rate of 25%?
There is someone who we will refer to as B.B. who has just invented a wonderful new device for monitoring the effort level of employees. This device will take precise measurements of the effort of employees and the Department of Justice has certified..
A producer of outdoor clothing used a focus group to obtain information about the demand for fleece jackets with? built-in battery operated warming panels. At prices of?$100, $90,? $80, $70,? $60, and? $50, the focus group demanded? 23, 31,? 40, 44,?..
The Antitrust Laws (like the Sherman Act and the Clayton Act) Establish minimum fuel economy standards for an entire manufactured fleet of automobiles. Protect the consumer (generally by promoting competition in the marketplace)
How many kilometers must a car be driven per year for leasing and buying to cost the same? Use 10% interest and year-end cost. Leasing: $0.20 per kilometer Buying: $5000 purchase cost, 3-year life, salvage $1200, $0.04 per kilometer for gas and oil, ..
Elucidate how much profit does an individual producer make in a month. Is this a long-run equilibrium.
Draw the complete consumption-leisure model. Be sure to label completely and correctly. Find the optimal consumption bundle.
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