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Overheard at the water cooler: "The demand and cost estimated that were provided at the meeting were very useful (Q= 90-6.5P and TC= 150 + 3.5Q). Unfortunately, what we didn't realize at the time was that our fixed costs were underestimated by at least 30 percent. This means that we will have to adjust our price upward by at least 30 % to cover the added fixed cost. In any case, there is no way we can survive by charging less than $9 for our product."
What does it mean to have an imperfectly competitive market. Clarify with examples.
Explain the difference between Discretionary Fiscal Policy and Automatic Fiscal policy. Provide an example of each.
How do two relate among each other in the Circular Flow Economy and to the Government and Foreign Sector components. How does all this fit on a Wheel of Income.
Could trade help reduce poverty in Brazil and other developing countries. How do product and factor prices and wages eventually equalize between the two countries.
The Solow Growth Model. In 2010, Japan was a large open economy with perfect capital mobility that was at its steady state.
Illustrate why the store's short-run equilibrium by plotting demand marginal revenue, average total cost,and marginal costs.
Whether the U.S. Congress press a tariff raising the cost of Japanese compute. Illustrate what are four mutually exclusive states of the world that you should be concerned about
Abstracting from any other factors, what is the range for rates of exchange of modems for DVD drives that will now include Northland
Could a service industry utilize production line approach or self-serve design also still keeps a high customer focus
Assume the value of equilibrium real GDP is $800 billion dollars. Assume the government increased spending by $20 billion dollars to increase real GDP.
You are manager of BlackSpot Computers, which competed directly with Condensed Computers to sell high-powered computers to businesses. Explain how will impact BlackSpot bottom line.
Illustrate what criteria are you using to classify this industry as an example of oligopoly.
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