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Suppose a typical consumer`s inverse demand function for bottled water at a resort area where one firm owns all the rights to a local spring is given by P=15-3Q. The marginal cost for gathering and bottling the water is $3 per gallon. Find the optimal number of bottles to package together for sale and the profit-maximizing price to charge for the package. Show the solution graphically.
Using the IS/LM/BP model and assuming perfect capital mobility, explain : how a decrease in foreign income affects domestic output. how an appreciation of the domestic currency affects domestic output.
On a sparsely populated island, high-speed Internet service would have a _____ marginal utility than in New York City, while in New York City quiet evenings would carry a _____ marginal utility than on a deserted island.
Were you aware of the Caste System? What is your reaction - thoughts? Can you think of a similar situation in other countries? This is more a sociology question.
In an application of the Harrod-Domar model, suppose the only final-goods industry in a country is the making of cotton shirts. The factories, machinery and warehouses used in production were purchased previously and are still worth $3 billion. Each ..
Most nurses in the United States receive their education in community colleges. Mainly because of differences in class size, the cost of educating a nurse is about four times that of an average community college student. Community college budgets dep..
The architectural and engineering estimate of $3,750,000 for the building is believed to be accurate, as is the estimates of $225,000 for annual operating and maintenance costs and $750,000 for existing equipment. A sensitivity analysis for these two..
Suppose you are a manager for a company that produces grape jelly. Which of the following is the best way for you to reduce your risk
Under what conditions has the Court ruled that restrictions of commercial speech were constitutional? What is the Court’s four-prong test?
Sexual violence in jails and prisons has been discussed in the textbook in several chapters. This unit’s required reading also discusses it. Do you think that the new Prison Rape Elimination Act will make an impact in curbing this problem? Does the n..
Assume that you borrow $15,000 for five years (annual payments) at a market rate of 5%. Assuming that inflation is 3.5%, what would the equivalent equal annual payment be in constant dollars? What is the Actual dollar amount of a $15,000 constant dol..
Suppose Jake would like to invest $3,000 of his savings. Suppose RoboTroid, a robotics firm, is selling stocks to raise money for a new lab—a practice known as 1) __________ (DEBT or EQUITY) finance. RoboTroid earns revenue when Jake purchases 100 sh..
Max has the utility function U(x, y) = x(y + 1). The price of x is $2 and the price of y is $1. Max’s Income is $11. How much x does Max demand? How much y? If his income doubles and prices stay unchanged, will Max’s demand for both goods double?
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