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What is a first mover advantage and what role does it play in strategic trade theory?
Please define monetary and fiscal policy. What are the key components of each policy? List several strengths and weaknesses of each. Based on what you have learned in class, which policy is more appropriate to manage economic performance or an econom..
Gail works in a flower shop, where she produces 10 floral arrangements per hour. She is paid $10 per hour for the first eight hours she works and $15 an hour for each additional hour she works. What is the firm’s cost function? What are its AC, AVC, ..
If the interest rate is 6% per year compounded quarterly, how long (number of quarters) does it take earn $100 interest on an initial deposit of $300? Downtown is experiencing an explosive population growth of 18% annually. At the end 2002, the popul..
Now suppose world relative demand takes the following form. Demand for apples/demand for bananas = price of bananas/price of apples. Graph the relative demand curve along with the relative supply curve.
The South Beach Café recently reduced appetizer prices from $10 to $8 for afternoon “early bird” customers and enjoyed a resulting increase in sales from 75 to 125 orders per day. Beverage sales also increased from 400 to 550 units per day. Calculate..
Which investment has a higher rate of annual cash return? Investment A: $1,000 bond with a coupon rate of 4 percent selling for $1,200 or Investment B: $1,000 stock with a P/E ratio of 10 that pays out half its profits in dividends.
Find an article published within 60 days prior to the term that deals with a government action intended to alleviate a market failure.
The Fed can reduce the money supply by,
On Jan. 1, 1965, you purchased a small house in Alameda, California for $20,000. On Jan. 1, 2015, you sold the house for $900,000. What is the effective annual rate of return (compounded annually) on this investment?
What is the difference between an induced expenditure and an autonomous expenditure in the Aggregate Expenditure model? Include a drawing a "typical" aggregate expenditure function. Label each axis. What does the intercept represent? What does the sl..
A competitive firm’s cost of production is C(Q) = Q3-20Q2+125Q. The firm’s problem is to choose the value of Q$0 that maximizes its profit. If this were a free entry industry, then what would be the long run equilibrium price?
A computer-controlled milling machine will cost Ajax Manufacturing $65,000 to purchase plus $4700 to install. If the machine would have a salvage value of $6600 at EOY 20, how much could Ajax charge annually to depreciation of this equipment? Ajax us..
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