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What is the importance of opportunity costs to decision-making and how opportunity costs lead to trade.
1. Suppose that the Parliament of the Republic of Tiramisu passes a legislation that removes existing investment tax credits and discourage saving.
Suppose that a monopolist sells a product to consumers with an aggregate demand that is downward sloping in quantity, D(Q) = 200 − 2Q. The total cost of producing Q units is C(Q) = 20Q + 2Q2. What are the consumer and producer surpluses (CS and PS) a..
Suppose you are a manager of a watch making firm in a competitive market. Your cost of production is given by C=200+2Q2 where Q is the level of output and C is the total cost.
Suppose a monopolistic competitor and long-run equilibrium has a constant marginal cost of six dollars and faces the demand curve given in the following table: What output will the firm choose? What will the monopolistic competitor's average fixed co..
Suppose a new law increases access to education for the lowest income earners in the economy. What affect will this likely have on economic mobility?
During the Christmas season, the Osceola School Superintendent orders each of the high schools within the school district to prominently display the nativity scene. Discuss at least two advantages and disadvantages of litigation as a dispute resoluti..
Currently, there is considerable debate about the environmental impacts of burning coal. The Environmental Protection Agency has established higher standards for clean burning fuel. In most of the Midwest, the majority of electricity is generated fro..
What are the advantages of using capital in the production process?
Describe the key structural differences between the economies of the United States and China. What are the main sources of economic growth in each of these economies? How do these differences impact the countries' economic growth rates and developmen..
The mayor of Denver wants to upgrade the public transportation system. In order to fund the improvements, the mayor proposes charging an extra $1 for each ride taken.
Assume the plane has a salvage value at end of Year 10 of $13 million. Contributed by Paul R. McCright, University of South Florida.
A medical expenses billing firm wishes to hire a software firm to design its software to more efficiently handle its billing. Having the programming redesign is worth $1.5 million to the billing firm. The software firm can write and install new progr..
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