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1) What is natural monopoly and when we will have natural monopoly in the market?
2) What types of industry are susceptible to have natural monopoly?
3) What is "information asymmetry"?
A firm with a CD production function Q = 1.5K 0.5 L0.4 plans to produce 900 units of output per day. Assume the prices of labor and capital are $50 and $100 a day-What is the firm's least cost combination of factors for production of 900 units of o..
Suppose that for a firm that digs ditches for laying cable or pipeline, backhoes and backhoe operators are pure complements in production, being used on a one-for-one basis. Draw the isoquants (on a graph with backhoe, “K”, and backhoe operators, “E”..
Presume real output is 12,500, and the demand for real money balances is Md/P = Y/4 - 125i. If the equilibrium interest rate is 7 %, compute the money supply. If the central bank sets the interest rate at 8 % what is the new money supply?
Which of the following is an example of an implicit cost for a firm?
Eeyore and Rabbit live in the Hundred Acre Wood. Both can spend their time planting vegetables or looking for sticks. The following graph shows their linear production possibilities. Who has the comparative advantage in planting vegetables
5 examples of individual and market demands? 5 examples of firm and industry product demands? 5 examples of autonomous and derived demands? 5 examples of durable and nondurable demands? 5 examples of shortterm and longterm demands?
At one time, it was believed that the way for a nation to prosper was to export as much as possible while importing as little as possible. More money would flow into a country than out of a country. Is this really a sound economic strategy? What is t..
What is the service mix? What is the payer mix? If a low percentage of a facility's cases are paid by DRG, the coding manager may want to establish different productivity standards for different payers
Explain the relationship between the marginal propensity to consume (MPC) and the marginal propensity to save.(MPS) How do these two components affect gross domestic product (GDP)?
1. How does a current budget deficit affect future workers How could a policy by the current government to reduce the national debt hurt these future workers 2. Monetary and fiscal policies are said to have "lags." What are lags and why do they exi..
An investor buys a stock for $40 per share and sells it for $45 after one year. Also, at the end of that year, the dividend per stock is $1. The company has 100,000 shares outstanding and a total profit for the year of $500,000. The price-earning..
Imagine that the central bank of an economy with unemployment doubles its money supply. What if (as is more likely) the interest rate is initially below its long-run level?
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