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Why do economists consider subsidies (payments to firms) a better way to lower prices than imposing a price ceiling?
Assume a monopolist faces a market demand curve P ?= 100 -? 2Q and has the short-run total cost function C= 640+ 20Q. What is the profit-maximizing level of output? What are profits?
Suppose the marginal propensity to consume (MPC) is 0.8. Compute the government purchases multiplier and the tax multiplier. If the government raises G by $500 billion, how much does GDP change by? If instead the government reduces taxes by $500 bill..
Future costs as well as future payments have present values. For example, some researchers say that global warming could cost $1 trillion per year in 100 years. Using the present value formula and an interest rate r = 5%, one researcher (William Nord..
Assume that the demand for product X is represented by the following equation: QDx = 400 – 5Px + 4Py -3Pz iii) Calculate the cross price elasticity of demand for Good Y and Good X if If you are told that Py = 25 and Pz = 50.
Select an asset of your choice. For example you may select an appliance in your home, office, or in another place that have been in use for many years and you are thinking is time to replace it by a new one. After selecting the defender equipment and..
Consider the following real data from the Federal Reserve Economic Database: Unemployment Rate Price Level Real Actual GDP 4th Quarter 2014 5.6% 234.812 16,311.6 4th Quarter 2013 6.7% 233.049 15,916.2 which curve(s) on the ADAS model must have change..
British Airways Plc plans to set aside investment funds now for replacing 34 of the airline's aging long-haul fleet of Boeing 747s and 767s, which will be delivered 6 years from now. How much will the company need to have in its investment funded now..
All loans shall be computed at an annual percentage interest rate(APR) of 3.75%. It is assumed that you will need the loan for four years (eight semesters). You will not make any payments towards the principle of the loans while you are attending col..
Discuss how the assumptions of the basic competitive model must be relaxed so that we may consider economic situations that are more realistic. Can governmental intervention be harmful in some special cases? Can governmental intervention improve welf..
Define and explain what the production on function and the marginal output curve are. Graph the production function and the marginal output curve. How are the two related? Indicate where the ranges of
An engineer is considering two different liners for an evaporation pond that will receive salty concentrate from a brackish water desalting plant. A plastic liner will cost $0.90 per square foot initially and will require replacement in 15 years when..
You have selected a small coffee shop in your area. Develop a strategy for expanding this business in a national market. Why do you believe the business could succeed in this new geographic market? What are the risks of expanding into this market?
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