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Over the past twenty years, the income gap between workers with college degrees and those without a college education has grown. Draw two supply and demand diagrams, one for workers with college degrees and one for workers without degrees. Now suppose new information technologies raise the marginal product of highly educated workers but do not affect the marginal product of less-educated workers. Use your supply and demand diagrams to illustrate what happens to the wage gap between the two types of workers.
Sam Lawson is a vice president at a large communications firm. His compensation includes a salalry of $400,000, a bomus of $200,000 and a stock option package that allows him to purchase 30,000 shares of the company's stock at $45 per share.
The demand in the cake market is Qd =500 - 10p and unrestricted supply is Qs = 100 + 10p. Suppose the government imposes a baker's license that reduces cake supply to Q¢s =10p. Calculate the numerical values of the following:a. Price that cons..
How might Google's search-engine dominance harm consumers? Help them? LO10-3
Find the cost of equity financing for common stock for the following information Dividend in year 1 = $8, growth = 6%, floatation costs percentage of stock price = 11.4%, and the current stock price = $58.
Galaxy A is reported to be receding from us with a speed of 0.35e. What mUltiple of e gives the recessional speed an observer on Galaxy A would find for (a) our galaxy and (b) Galaxy B
Supposed a firm faces an inverse demand function of p(y)=20-y and a total cost function of c(y) = a + y^2 What would be the economic interpretation of the variable a
Consider the demand and supply curves for rental apartments: Qd= 1000 - P, Qs=P - 100. Assume that the government imposes a price ceiling on rental apartments of 400. In this situation the deadweight loss is equal to
Suppose that for the firm below, the goods market is perfectly competitive. The market price of the product the firm produces is $4 at each quantity supplied by the firm. What is the amount of labor that this profit-maximizing firm will hire
What would happen to these students if wages and prices began to fall at 5 percent per year?
Under a fixed exchange rate system, when will speculation by foreign investors be stabilizing? When will it be destabilizing?
A monopolist faces a demand curve given by: P = 105 - 3Q, where P is the price of the good and Q is the quantity demanded. The marginal cost of production is constant and is equal to $15. There are no fixed costs of production.
How do these translate into a competitive advantage?
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