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Draw a graph showing a firm in long run monopolistically competitive equilibrium. Label everything clearly. Can a firm under monopolistic competition make economic profits in the long run? Why or why not? Explain.
In 2013, there were numerous global conflicts: civil war in Syria, unrest in Brazil, and continued turmoil in Iraq and Afghanistan. Though many of these conflicts are far from U.S. borders, how might they play out in the American economy (i.e., in la..
What is the present worth of cash flows that begin at $20,000 and increase at 7% per year for 10 years? The interest rate is 9%.
Perform an annual equivalence analysis for the two options, and state which is the better option and why. Calculate the present worth of the incremental system (1 - 2): and state which option is better and why.
Over the past 50 years improvements in transportation and communication technologies has made it easier for companies to engage in business outside domestic borders. What forces motivate organizations to go global?
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..
A nation is enjoying a good economy with high and rising real GDP, expectations for continued growth and profitability, increasing personal incomes and low unemployment (expansionary business cycle). Outline the effects on supply and demand for loana..
The economy is currently in equilibrium at full employment. Suppose that the Fed increases money supply growth by 5 percent. Using an aggregate demand and supply graph, explain exactly what happens and why to aggregate output (real GDP) and the infla..
Two laws that affect the operations of labor markets are the minimum wage law and the right to work law (where a person can choose to join a union). Who benefits and who loses from each of these laws. Give at least two examples each.
Is this just a temporary hiccup toward globalization of trade and free markets?
The long-run and short-run aggregate supply curves reflect fundamental differences between long-run and short-run macroeconomic analysis. Graphically illustrate the long-run and short-run aggregate supply curves. Be sure to label the axes.
A firm has estimated that the demand for its product comes from two types of customers, type I and type II. Each type I customer -there are 30 of them- has a demand curve given by Q = 20 - P, while each type II customer -there are 50 of them- has a d..
Discuss how a purely competitive firm might gain market power (and therefore no longer be a purely compettiive firm). Be detailed and specific. Why would a firm wish to gain market power? How would the firm's success in gaining market power affect th..
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