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Alden has a summer beach cottage that he has owned for many years. The cottage is valued at $80,000. This year, Alden spends $400 on paid and $575 on trees, and then paints the exterior of the cottage and plants the trees himself. If he hired a professional painter, it would have cost $1,150 to paint the cottage (not including the cost of the paint) and if he had hired a professional landscaper, it would have cost $375 (not including the cost of the trees) to do the planting. How much does Alden's improvements add to the GDP this year.
The increase in GDP would be?
Would you say the firm is price discriminating? Why or why not, and if yes what type of price discrimination is this? If people began trading these hard drives freely between the US & Mexico, what would happen to the price?
Consider options on Microsoft stock. Suppose that there are call options with a strike price of $10 and put options with a strike price of $10, both with the expiration date of January 16th. Compute the gross profit
Government sometimes provide subsidies to specific industries; that is, they reduce a domestic firms cost so that it can sell products on the international market at a lower price. What reasons do governments use for these government subsidies?
You are the manager of a business in a monopoly market with the following inverse demand function. In addition, assume your production technology is described by the total cost function.
A market is currently characterized by a perfectly competitive structure. If market demand is P = 200 - Q and MC = ATC = 50 for each of the competitive firms, what is equilibrium output and price in the market? Show work. Calculate consumer surplus i..
How could you use the concepts of marginal cost and marginal revenue to maximize profit? What information do you need to determine this? Without this information, how would you make a decision?
Imagine the hourly production for tuna cans is given by q = 6K + 4L. Assuming capital is fixed at 6, how much L is required to product 60 tuna cans per hour? Assuming capital is fixed at 8, how much L is required to product 60 tuna cans per hour?
What would happen to his attempt to attain a blanaced budget? How would the President tell that his economy is approaching equilibrium or getting better?
For this assignment, you are to continue using the fortune 500 Verizon Wireless Company.
Suppose a society consists of three cities (A, B , C. ) with populations of 99,000 , 51,000 , 6,000 people respectively. Suppose that the society has 15 doctors total. What cities will have how many doctors? If the number of doctors doubles to 30. Ho..
One more year passes, and the A-B free trade area negotiates a partial reduction in barriers to their trade with country C. Without drawing any additional diagrams, is this action more likely on net to generate trade creation or trade diversion? Expl..
A company produces two main products: electronic control devices and specialty microchips. The average total cost of producing a microchip is $300; the firm then sells the chips to other high-tech manufacturers for $550. Now suppose $200 of the avera..
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