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Assume that your firm above is the N.Y. Yankees and the league owners impose a lump sum tax of $4 million dollars on your firm. How will the tax affect your profit maximizing output and pricing decision (view output as a measure of desired run production or wins for the season if you like). Explain your reasoning. Now assume that the league owners impose a tax of 25 percent on costs that are above $500,000. Calculate your optimal output and pricing decision, and your profits.
Use the production possibilities frontier (PPF) to demonstrate economic growth.(Growth and the PPP)
According to law of comparative advantage , who should produce wheat and who must produce Cd palyer? Evaluate all relevant opportunity cost.
What does Friedman believe about expansionary monetary policy? Do you think Keynesian economists would agree?.
Make a table and graph of Crusoe's production function. Find out the Marginal product of labor for Crusoe at different quantities of labor.
What are the FC, ATC, AFC, AVC and MC at these output levels?
The U.S. government spends over $15.8 billion on its Food Stamp Program to provide millions of Americans with the means to purchase food.
Construct a table shoeing Grey's marginal sales per day in each state. Calculate Grey's maximum monthly commission income.
If the price of manufactured goods rises to $6 bushel (a rise of 50%), the parity price of corn as well rises by 50% - to $4.50 in this hypothetical example.
For the product shown, assume that the minimum point of each firm's average variable cost curve is at $2. Construct a demand and supply diagram for the product and indicate the equilibrium price and quantity.
Indicate whether each of the following statements is true, false, or uncertain, and explain your answer.
Which of the following is the best example of a monopolistic competitor? Firms in a monopolistically competitive industry produce:
The FCC has hired you as a consultant to design an auction to sell wireless spectrum rights. The FCC indicates that its goal of using auctions to sell these spectrum rights is to generate revenue.
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