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Price Ceilings: Discuss whether you think we should continue to have a zero price for using a freeway. Or should we have transponders mounted on the dashboards of vehicles, as practiced in Singapore, which monitor and track the miles-driven within a city. Is this technique a non-starter for you? Although, on the bright-side, could you imagine not being stuck in slow-moving traffic again?
Price Floors: Discuss whether you think we should continue to have a Government-regulated minimum wage law. Have you wanted a job, and been willing and available to work, but unable to get hired? Would you have taken a job for a slightly lower wage, if one had been available?
Suppose a person has $20 to spend on music and likes both rap music (R) and country music (C) with a set of preferences so that U=C^1/2R^1/2. Suppose that the iTunes price of a rap music song is PR=2 and the price of a country music song is PC=1. Wri..
Discuss how each of the 4 factors contributed to the elasticity of the good.
Susan was given 2 packs of bubble gum and 30 hats, and Cathy was given 8 packs of bubble gum and 10 hats. Susan and Cathy derive utility from hats and bubble gum from the following utility functions: Susan
Free zone would happen if the central bank lowered the federal funds rate and buy securities on the open market.
q.on january 2d 2012 canon expects to ship 750000 all-in-one fax printers and copy machines from its plant in japan to
What is market failure? If market failure is present, does this imply that government intervention will lead to a more efficient allocation of resources? Why or why not?
You are the manager of a monopoly that faces a demand curve described by P = 85 - 5Q. Your costs are C = 20 + 5Q. The profit-maximizing price is
Suppose that a store will sell 2000 boxes of bananas a week at a price of $12 per box. If the store raises its prices to $15 per box, it will sell 1500 boxes. What is the elasticity using the original formula? What is the elasticity using the midpoin..
Also during first year, cookie business made monetary outlays of $9,000. You may assume that re is no opportunity cost to Zach's time. What is economic profit and accounting profit.
Suppose that the firm has determined its profits-maximizing level of inputs in the short-run. Now the price of a fixed input goes up. How will this change the behaviour of the firm? What will happen to profits? Why?
q1. consider a firm using a single variable input labor and a single fixed input capital. please explain what will
Pete's report says that the demand curve will be then OmiCon will build a shopping center that optimally sized for that demand curve. But in the second scenario, if Pete's report says the demand curve will be there is a 20% chance that demand curve w..
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