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How is consumer surplus defined and what does it attempt to measure? Suppose that a firm is able to perfectly price discriminate in a market. If a firm does this, what happens to consumer surplus in the market? Is price discrimination fair? Why or why not?
Prepare a composite (weighted) index for housing construction costs in 2008 with the following data:
Sam has preferences for consumption goods (C) and time spent on leisure (L). The utility function is u(C,L) = CL. The household also has a home production technology summarized by a production function. How much time will Sam spend in leisure? How ma..
q1. the abc corporation is contemplating purchasing a new computer system that would yield a before-tax return of 30.
The cross-price elasticity between mobile phones and ear buds is estimated to be 2.5. What do you predict will happen to ear bud demand (sales) and price, other things being equal, if mobile phone prices fall?
Based on the regression equation, the price of gold increased on average by approximately $___ per ounce for a $500 billion increase in the monetary base (round to the nearest dollar). regression equation $/oz gold=207+.05 monetary base
How does a tax affect an individual’s decision? Consider the case of an individual who consumes two goods: bread and tortillas, both of which are initially free. Also, assume that the price of each good and the individual’s income are given
Your car gets 9.5L/100 km at 90 km per hour (kph) and 11.5 L/100 km at 110 kph. At what speed should you make an 800 km trip: a.) If gas cost $0.90 per litre and your time is worth $18/hour? b.) If gas costs $1.00 per litre and your time is worth $12..
q1. the lojack car recovery system allows the police to track stolen cars. as a result they not only recover 90 percent
Suppose the market for pizza is perfectly competitive. Furthermore, suppose the total cost curve for a typical pizzeria is TC = 2 + 12q2 where q represents the quantity of pizzas sold by a single pizzeria each day. How many firms will operate in this..
Graphically show the impacts of a carbon tax on electricity producers. Using another graph, illustrate how a tax compares to a uniform air quality standard that imposes fees on electricity producers in non-compliance. Briefly discuss which policy is ..
The type of planning conducted on a long-range basis by top managers is usually called
Why might a money lender who relies on threat of cutting off future credit to enforce repayment of current loans be less willing to make a loan to an individual that plans to invest money productively.
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