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1. Suppose Bob owns a pizza place in a competitive market. If an additional worker will cost Bob $200 and offers marginal productivity of 40 pizzas, what is the marginal cost of producing a pizza? Show your work and explain your reasoning.
2. Consider the market for managers. Assume the opportunity cost of earning the MBA decreases for many people. Let’s assume it typically takes about two years to complete the MBA, so what happens to the equilibrium wage for managers in two years other things equal? Draw a picture use it to explain your reasoning.
The monthly market demand curve for calculators among economics students is given by P=100-2Q, where P is the price per calculator in dollars and Q is the number of calculators purchased per month. If the Price is $30, how much revenue will calculato..
Barb also Jim run a business which sets up also tests computers. Assume which Barb also Jim can switch between settings up also testing computers at a constant rate
Suppose that a store will sell 2000 boxes of bananas a week at a price of $12 per box. If the store raises its prices to $15 per box, it will sell 1500 boxes. What is the elasticity using the original formula? What is the elasticity using the midpoin..
The elasticity of demand is: Whether buyer or sellers pays more of a commodity tax depends on:
Given the production function Y = A and fixed values for the saving rate and depreciation, if productivity is growing at an average rate of three percent, and the labor input grows at two percent, there is a unique growth rate of capital that is sust..
The Fireyear and Goodstone Rubber Companies are two firms located in the rubber capital of the world. These factories produce finished rubber and sell that rubber into a highly competitive world market at the fixed price of £60 per ton. The local gov..
q.the muffler on your car suddenly needs repair also there are only two automobile repair shops in town. you drive to
By how much might the quantity of labor supplied decrease if the tax elasticity of supply were 0.20 and the marginal tax rate increased from 35 to 39 percent?
Provide the owner a detailed plan of what you intend to do to make his FBO profitable again. For instance, what specific areas are you going to look at to determine your plan to turn the business around?
Illustrate what government assistance programs does the Census Bureau consider when calculating household income.
The following equation represents the daily market demand for crude oil. If collusion is not allowed, what kind of market arrangement do you think is likely to result from competitive interactions among these four firms? Now suppose collusion is allo..
Developia produces two goods, manufactures and food, using three factors of production: capital, land and labor. The production of manufactures requires capital and labor, while the production of food uses land and labor. What is the effect on the al..
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