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Q1. In country A the opportunity cost of a ton of cereal is 100 gallons of beer. In country B the opportunity cost of 100 gallons of beer is 0.95 tons of cereal. Both countries can experience gains from trade if the exchange rate for a ton of cereal is 96 gallons of beer. Why is the answer to this question false?
Q2. A firm incurs production costs C(q) = F + mq, and transportation costs T(q) = aq + bq^2, where q is the output of each of its plants. What is the optimal plant size, and how does it vary with the parameters F, m, a and b?
Why does a union electrician earn less than a non-union electrician? Why does a white male earn more than a white female with the same level of education? Why does a movie actress like Angelina Jolie earn more than a movie actress from the 1940s?
Discuss the following situation (a) from the strictly legal viewpoint, (b) from a moral and ethical viewpoint, and (c) from the point of view of what is best in the long run for the company. Be sure to consider both short- and long-range consequences..
What is the difference between customer satisfaction and customer loyalty? Why is it important to distinguish between these two concepts?
Find the net demand curve-facing industry A. Conclude A's optimal price also o/p. How much o/p do the other Industries provide in total.
Conclude whether there is an arbitrage opportunity in the option market, using the put-call parity.
Cousin Edgar is always thinking of the next business idea. This time, he plans to invest in buying two gas stations. He reckons American consumers have come to accept the high gasoline prices, and estimates world prices for gasoline to increase even ..
Forecasters predictions of inflation are notoriously inaccurate, so their expectations of inflation cannot be rational.
Identify ethical perspectives in the global organization.
If income elasticities are equal for all goods, then all Mashallian demand functions must be downward sloping.
A firm produces handbags using three workers. On Tuesday, Jane completed 60 bags in 6 hours, Ron completed 50 bags in 7 hours, and Mary completed 80 bags in 5 hours. What was overall productivity of firm.
Anation's consumption function (expressed in millions of inflation- adjusted dollars)is: C=200+.80*DI. what is value of autonomous saving.
Assume that the senior managers of FedEx Express and FedEx Ground each have an investment opportunity that would require $20 million of additional operating assets and that would increase operating income by $4 million. If FedEx evaluates all of i..
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