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Customers arrive independently in a shop. The number of men who arrive is given by a Poisson distribution with an expectation of 2 per hour. The number of women who arrive is independently given by a Poisson distribution with an expectation of 4 per hour. What is the probability that the next woman to arrive comes no more than 15 minutes before or after the next man to arrive?
Suppose that in the 1990's, the average retail price of a roll of Kodak film was $6.95 and that Kodak's marginal cost was $3.475 per roll. Based on this information, discuss industry concentration.
Explain how in the IS-LM model an expansionary monetary policy affects economic activity and under what conditions this policy will be more or less effective.
Suppose the total cost of producing a given quantity of a good is given by: TC = X1/2 where TC is total cost and X is the quantity of the good. Given this information, determine whether production of the good is characterized by increasing returns to..
Determine whether the taxpayer in each of the following situations has realized income. Explain why there has or has not been a realization, and determine the amount of income to be reported.
Suppose you compare your income this year and last year and find that your nominal income fell but your real income rose. How could this have happened?
Suppose that when the price of shoes increases by 5%, the quantity demanded for socks decreases by 10% and the quantity demanded of sandals increases by 4%. What is the cross-price elasticity of socks with respect to shoes? Are shoes and socks relate..
A college graduate with a B.S. in Mechanical Engineering expects to earn, on average, $20,000 per year more than an engineer without a B.S. degree. If the graduate expects to work for 35 years, and the cost of the college education is $100,000, what ..
For the United States, empirical studies indicate that over the past two decades the cost of international transportation relative to the value of U.S. imports has: Should international transportation costs decrease, the effect on international trade..
Suppose the factory Afro-Puffs Inc. produces wigs. As a by-product of this wig production, they also produce dangerous emissions of toxic gases (as a result of the strong glue used to hold the hair in place). The De-Lite car factory, down the road, e..
Listed below is the amount of commissions earned last month for the eight members of the sales staff at Best Electronics.
Iggy only consumes two goods: coffee and cigarettes. Three cigarettes can be traded for one cup of coffee in a free market, or one cup coffee can be traded for three cigarettes. Iggy initially has 12 cigarettes and 5 cups of coffees. Find an equation..
What happens if the price floor is above the equilibrium? and what happens when price ceiling is below the equilibrium?
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