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Suppose an assistant professor of economics is earning a salary of $75,000 per year. One day she quits her job, sells $100,000 worth of bonds that had been earning 5 percent per year, and uses the funds to open a bookstore. At the end of the year, she shows an accounting profit of $90,000 on her income tax return. What is her economic profit?
Give an example of how nations can benefit from trade on the basis of comparative advantage. Explain how both parties can share in the gains from trade.
When I look at a cost function such as TC=9000 + 9Q, Am I correct that the 9000 in this figure is overhead and the 9 would be the marginal cost, Q would be the qty produced?
Suppose that a store will sell 2000 boxes of bananas a week at a price of $12 per box. If the store raises its prices to $15 per box, it will sell 1500 boxes. What is the elasticity using the original formula? What is the elasticity using the midpoin..
Illustrate what do you think would be the short-run impact on the firm's production.
Illustrate what output does the low point of ATC occur and illustrate what is the ATC at that output. Explain how your calculations.
A decrease in the wage rate
In what conditions will an increase in the price of a product lead to a reduction in total spending for that production.
Suppose that the salary for a recent industrial engineering graduate is expected to increase by 12% per year from a base of $52,000 over the next five years. If the interest rate is taken to be 10% during the period, the present worth of the earnings..
What happens to price and output in the Cournot, Bertrand, and Stackelberg models if marginal costs increase by 10 percent? The market demand is p = a ? bQ and the marginal cost is constant across firms, i.e. mc1 = mc2 = c. You may consider for two f..
If it decreases the price to $63, what should be the quantity sold? Will revenue increase? Why? Show all work
You will need to determine how you will measure strict gun control laws for the states and to define what types of crimes will make up the crime rate.
Do you think the attitudes and bargaining behaviors of the participants in collective bargaining negotiations are more or less important in the final outcome than economic conditions and factors? Why?
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