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Suppose that in addition to repairing your car, you can also spend money advertising. If you repair your car for hours and spend A dollars advertising, your benefit (the amount you revive when you sell your car) is B(H,A)=220H-H^2+2A. Both H and A are finely divisible. What is your marginal benefit of repair hours when H=4 and A=100? What is your marginal benefit of advertising dollars at that choice?
Which of the following would cause a change in supply, as opposed to a change in quantity supplied, in the market for used homes? 1. an increase in the number of buyers in the market for used homes 2. An increase in the income of home buyers. 3. A de..
You are in a class with one other student. It is the end of the semester and final exams are in one week. Your teacher has said the final exam will be graded so that anyone who scores the class average on the final exam will receive a B in the class.
What are the five factors that influence comparative advantage? How can the government use different fiscal policies to [a] lower unemployment and [b] reduce inflation?
If the government were to increase taxes on gasoline, what will happen to the total government revenue? Why? What are you assuming about the elasticity of the demand curve of gasoline? What is the formula for elasticity? Would the government make mor..
the pilots will receive options to buy 14 million shares of the firm's stock over the next 10 years. What impact do you think this new contract will have on Southwest Airlines?
Suppose the interest rate lowered to 3.75%. What would be the market price of the bond.
Jack wishes to become a millionaire by the time when he is 60 years old. He believes that by careful investment he can obtain 15% rate of return. He plans to add a uniform sum of money to his investment each program each year, beginning on his 20th b..
Explain the strengths and weaknesses of using monetary policy in comparison to fiscal policy when promoting economic activity.
How did Neoclassical economists rationalize a policy of laissez faire with respect to the potential intervention into a market economy by government? Why do modern economists, on the other hand, acknowledge a role for government? Pareto’s definition..
Why would a US company choose to export a product to India rather than license India the right to produce the product locally
We mentioned Milton Friedman's advice that central bankers should follow a "fixed money growth rule," where the broad money supply (M1 or M2) grows the same rate every year. What is the difference between a fixed money growth rule and nominal GDP tar..
To what extent can Rolls-Royce's strategic approach can be best categorized as "Deliberate" or as "Emergent"? Explain your answer and explain Porter's five forces framework and suggest to what extent it has helped Rolls-Royce to better analyze its ..
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