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1) Please explain a market with labeling that identifies the equilibrium price in the market as the value of a good in the next highest use, or opportunity cost.
2) If B co. is to against the movement up and down of beans (the basic ingredient for manufacturing chocolate), when should they buy and when should they sell bean futures? Explain using the speculation and futures contract price behavior.
What is the connect between speculation, futures contract price behavior, and this question?
3) Use a graph with appropriate labeling to point the several components of the lost gains of trade associated with a price control policy which imposes a "price ceiling". Then provide a brief description of the impacts of the lost gains of trade associated with such a policy.
Using short-run cost theory, explain the impact of this additional patient on the SAVC and SATC. Do they increase or decrease.
One of the reasons Joseph Schumpeter argued that capital was doomed was because he predicted that big corporations would naturally shift away from risk-taking entrepreneurship in favor of low-risk managerial strategies. Has this happened? Have major ..
Suppose we now care about the long run decisions of a firm that has a production function of the form q = 4L^1/2 + K. What are the optimal choices of inputs for this firm? Do you find something unusual what compared to the optimal choices for q = 10 ..
If the Social Security retirement system was a private retirement system, it would be declared bankrupt. Discuss why this is so and why the Social Security system can continue to pay benefits despite the fact that it can be considered bankrupt. Discu..
q. suppose that low-skilled workers employed in clearing woodland can each clear one acre per month if they are each
How did Henry Ford by two of his brilliants insights was most responsible for the growth of the automobile industry?
The Fed wants to increase the money supply (which is currently 4,000) by 200. The money multiplier is 3. For each 1 percentage point the discount rate falls, banks borrow an additional 20. Explain how the Fed can achieve its goals using the following..
What is the process by which a recessionary gap closes itself? Explain. Why might this self-correcting mechanism work slowly in the face of a recessionary gap?
Suppose, Worker 1 has a reservation price of 41 cents; worker 2’s reservation price is 42 cents; worker 3’s reservation price is 43 cents, and so on. There are 150 jobs in firms without air purification systems, and this number is fixed. Thus, the de..
The new extruder will increase the company's annual income by $90,000. Maintenance and operating costs are expected to be $4,000 during the first year and to increase by $1,200 each year. XYZ uses a before-tax MARR of 12% for its preliminary economic..
When a fine caterer produces 30 catered meals, its marginal cost and average variable cost each equal $10. Therefore, assuming normally shaped cost curves, at 29 meals:
To produce a boat, you need wood as an intermediate good. If this country imports both boats and wood, a 10% tariff rate can be imposed on boat imports, and a 5% tariff rate can be imposed on wood imports. The price of a boat is $1000 before the tari..
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