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How is it possible that in perfect competition some firms have economic profits equal to zero while others have a positive economic profit. Can they have a positive consumer surplus? Isn't it a contradiction?
the technology is now developing so that road use can be priced by computer. A computer in the surface of the road picks up a signal from your can and automatically charges you for the use of the road. Explain how would this affect bottlenecks and..
In the Great Plains states west of the Mississippi river, annual rainfall is less than annual water usage for irrigation. The level of groundwater in the Ogallala aquifer that underlies the region is dropping precipitously. On its western edges the a..
If the firm's MARR is increased to 25%, what would be the required savings in leasing so that the project would remain profitable.
Historical data suggests that in the athletic shoe industry, the price elasticity for shoes is approximately -0.67. Explain what price elasticity is, and how to interpret the stated elasticity for athletic shoes of -0.67. What effect would you expect..
A single firm monopolizes the entire market for some product which can be produced at a cost of c(Q) = Q^2. The firm faces a market demand curve given by Q = 60 ? 0.5p. What is the firm’s profit? Calculate the Lerner Index for the market
A newspaper article once reported that U.S. economy was experiencing a low rate of inflation. Why does inflation affect increase in Social Security and or profits.
The Circular Flow diagram is model of how the economy works. Explain how the model would change if the following events ocurred:Households increase savings.
Ann owns a lawn mowing company. She has 240 lawns she needs to cut each week. Her weekly revenue from these 240 lawns is $8,400. If given an 18-inch deck push mower, a laborer can cut each lawn in two hours. If given a 60-inch deck riding mower, a la..
The following equation relates housing price (price) to the distance from a recently built garbage incinerator (dis). Interpret the coefficient on log(dist). Is the sign of this estimate what you expect it to be?
with monetary policy for closed, it is hard for authorities to stimulate demand. Interior design does this show that currency-board regime was a mistake.
How might you construct a measure of the "change in the price level" What additional information might you need to construct your measure.
Assume that average income in the world and the cost of catching fish are both equal to their initial values. Drag the vertical green line back and forth to show the equilibrium quantity of fish caught under these conditions.
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