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Suppose the market for chewing gum is perfectly competitive, the demand is Q=20-P, and the supply is Q=-4+2P. What is the Consumer, Producer and total surplus?
The relationship between a worker’s daily wage, w, and her daily output, q, is q = 0.1w22 – 0.0005w3 so that the worker’s marginal product with respect to her wage is MPw = 0.2w – 0.0015w2. What is the optimal efficiency daily wage for the firm to pa..
Illustrate what is the relation between marginal benefit and marginal cost at this level of the control variable.
If, at the output where marginal cost equals marginal revenue, both a pure competitor's and a monopolist's marginal revenue is $5.00:
What is currency crisis (or financial crisis)? What are the major stages of a financial bubble? Use one example (Mexican peso crisis, Asian financial crises, Argentine financial crisis, or 2008 financial crisis) to illustrate these stages. What major..
Triggers are ethnocentric responses to differences and defensive reactions to ethnocentrism. Any number of things can serve as triggers, but they generally fall into the following categories: voice, appearance, attitude, and behavior. Describe a trig..
If an investor wants a portfolio risk with .1, then what proportion of her portfolio wealth should she invest in the stock, and what proportion should she invest in the risk free asset with Rf=.07? What will be her portfolio expected return? Standard..
With reference to output and substitution effects, explain why and how an increase in the wage rate of autoworkers willgenerate a negative employment response in the long run than in theshort run. Assume no changes in prices on non labour input and a..
Antitrust authorities at the Federal Trade Commission are reviewing your company’s recent merger with a rival firm. The FTC is concerned that the merger of the two rival firms in the same market will increase market power. A hearing is scheduled for ..
If the United States and Russia were the only two countries engage in trade, what adjustments would you predict, assuming exchange rates are freely determined by the laws of supply and demand?
Consider firms in industries you are familiar with. Are firms in such industries price takers or price-setters? How much control do they have over the prices they charge? (150 words)
A used car dealer advertises financing at 4% interest over 3 years with monthly payments. You must pay a processing fee of $250 at signing.
You operate your own small building company and have decided to bid on a government contract to build a pedestrian walkway in a national park during the coming winter. The walkway is to be of standard government design and should involve no unexpecte..
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