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Assume that the best alternative to your product has a price of $50 per unit. The average consumer uses this product 100 hours per year and spends $500 doing so. Your research shows that your product should be 10% more efficient than this nearest competitor. What is the True Economic Value of your product?
Assume that the pizza market at Duluth is a perfectly competitive market, which means there are many suppliers and all of them are price takers.
If government takes no action in response to a negative externality
Imagine you are a CPA representing a client preparing for the formation of a foreign corporation. Create a plan for the client to transfer property into the foreign corporation that will generate the least tax consequences.
A company with 100 employees decides to offer its employees medical insurance administered by a major health company, but funded totally by the employer—i.e., it self-insurance. The CEO is furious with his HR director who told him that, given their h..
A young college student on a tight budget is campaigning for an open city council seat. A friend in her economics class estimates that voters are influenced by TV and newspaper ads according to the following function: what is the lowest-cost combinat..
The optimal amount of capital and labor used by a firm in the production process is usually obtained by the technique of cost minimization, rather than amximizing the level of output produced. Explain why this is usually true using isoquants and an i..
Elucidate what happen in the short run to market supply and demand curves, market price, the firm's output, the firm's profit.
The elasticity of demand at the profit-maximizing point on demand is __________ (elastic, inelastic, unit elastic), as it must be for profit maximization to occur. Total revenue ________ (is, is not) maximized at this point on demand. The maximum pos..
Explain the role of the Federal Reserve, who monitors it and is it effective in its job? Evaluate one of the strategies of the Federal Reserve.
Suppose you have received a credit card offer from a bank that charges interest at 1.3% per month, compounded monthly. What is the nominal interest (annual percentage) rate for this credit card? What is the effective annual interest rate?
Suppose you run a manufacturing business that is involved in manufacturing and selling a single product. The fixed cost to run the business is $15,000 and the constant marginal cost is $7.50 per unit. The sale price of your product is $15 per unit. F..
A population has a mean µ=76 and standard deviation s=27. Find the mean and standard deviation of a sampling distribution of sample means with sample size n=81.
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