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What are three examples of agglomeration economies that can result from population and economic growth in a region?
How are federal budget surpluses and deficits affected by the business cycle?
You are a builder of fiberglass boats in very competitive markets. Fiberglass is derived from crude oil which has recently risen in price. Using diagrams, show what happens to the cost curves of your firm and to the market supply curve due to the inc..
In the city of Growville, the equilibrium employment is 100,000 workers, and the equilibrium wage is $80 per day. The elasticity of demand for labor is 1.0 (in absolute value) and the elasticity of supply of labor is 4.0. The employment multiplier is..
In your opinion, what is the most influential form of media today? Explain
Your family recently began operating a car wash at a beach resort. There are many other car washes at this beach resort. You have observed that the customers care only about finding the cheapest price for car washes; they do not care which company th..
Calculate the equilibrium price and quantity that will prevail under a free market, and the price elasticity of supply and demand at the market equilibrium.
You are a manager for Herman Miller, a major manufacturer of office furniture. You recently hired an economist.
Under what conditions are cournot and bertrand equilibria the same? You may assume the market demand is p = a ? bQ. Consider when firms are identical and different. If not, please explain why.
Consider the open economy model. Suppose that U.S. investors decide to invest more in Canada. What happens to the real interest rate, the real exchange rate, the net capital ouflow, and the net exports in Canada and in the U.S.?
Select a question from the list for this week's discussion. Discussion question list:
A pharmaceutical firm faces the following monthly demands in the U.S. and Mexican markets for one of its patented drugs: Find the profit-maximizing prices and quantities in each market. What are the firm's total profits?
Compute the range of the international relative price of soft drink cans at which the two countries would trade. Suppose that discovery of a new method of production (technological progress) in Italy doubles the marginal product of labor in snowboard..
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