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Oversize Transport Inc. supplies custom delivery service for very large construction equipment in the southeast region of United States. The most common lead of the specialty trucker is the Caterpillar model 740 dump truck, which is about 258 feet long. The owner of Oversize Transport, who also drives the firm's single 275-foot long tractor-trailer rig, chooses to lease this huge piece of capital equipment under a five-year contract requiring monthly lease payments of $5,500 per month. Oversize Transport could not service this profitable market with any rig shorter than 275 feet. A typical delivery takes about a day and a half, so Oversize Transport can make at the most only 20 deliveries per month with its one tractor-trailer rig. Under what circumstances is the tractor-trailer a fixed input? A quasi fixed input?
Suppose that in 1960 Joe’s grandfather had a starting salary of $20,000 per year. In 2013 Joe graduated from college, got a job, and had a starting salary of $40,000. You need to know the inflation rate in each of the two years to figure out who is b..
q.sara is a dot.com entrepreneur who has established a web site at which people can design and buy a sweatshirt. sara
q1. market efficiencies and inefficiencies happen all around us. consider the definition of perfect competition and
A purely competitive firm finds that the market price for its product is $30.00. It has a fixed cost of $100.00 and a variable cost of $17.50 per unit for the first 50 units and then $37.50 per unit for all successive units. What is the average varia..
Explain how does trade affect the production possibilities frontier. Illustrate what other factors can expand the production possibilites frontier.
A student taking economics, statistics, and finance has decided to spend 9 hours per week studying. The objective is to maximize the average grade, which means maximizing the total grade in the three courses. How should the student allocate her time?..
A small used delivery van can be purchased for $18,000. At the end of its useful life (eight years), the van can be sold for $2,500. Determine the PW of the depreciation schedule based on 10% interest using: Straight-line depreciation, Double declini..
Suppose that in Florida between 2006- 2009 the prices of oranges increased, and then between 2011- 2013 quantity of oranges sold decreased. Could it be possible that the demand for the orange decreased between years 2006 and 2009 and again between 20..
Discuss how each of the 4 factors contributed to the elasticity of the good.
Consider a Cournot duopoly with the inverse demand p = 130 - Q. Both firms have constant marginal and average cost MC = AC = 10. Find the Cournot-Nash equilibrium output and profit of each firm. Calculate the con-sumer surplus and DWL.
Suppose 80% of US trade is with Canada and the rest is with Mexico. If the dollar appreciates by 10% against the Canadian dollar and appreciates by 20% against the Mexican peso, what is the percentage change in the effective exchange rate of the Unit..
illustrate what would be the government spending multiplier. What would be the taxation multiplier.
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