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1. What role does consumer utility maximization play in a general equilibrium analysis? What is the role played by firm cost minimization in a general equilibrium analysis?
2. What is Walras' Law? What is its significance?
A firm has a production technology that permits it to turn 1 unit of good 1 into 2 units of good 2. If the price of good 1 is 1, at what price for good 2 will the firm just break even? Graph the firm's profit as a function of the price of good 2.
The St. Thomas Winery plans to open a new production facility in the Napa Valley of California. Based on information provided by the accounting department, the company estimates fixed costs of $250,000 per year
A manufacturer of air-conditioning systems expects to sell 10,000 units next year if the economy recovers from the present recession. If the economy remains at its present state, the firm expects to sell 7,000 units, and if the recession worsens.
A monopolist faces a demand curve given by Q = 70 P. The monopolist's marginal revenue function is given by MR = 70 2Q. a. If the monopolist can produce at constant average and marginal costs of AC = MC = 6
Howard Bowen is a large-scale cotton farmer. The land and machinery he owns has a current market value of $4M. Bowen owes his local bank $3M. Last year Bowen sold $5M worth of cotton. His variable operating costs were $4.5M; accounting depreciatio..
Find any differences in the set of variables used in a regression model of demand for customer durable and a regression model of the demand for fast moving consumer goods
A new machine can be purchased today at $300000. The annual revenue from the machine is calculated to be $67000 and the equipment will last 10 years. Expect the the maintenance and operating costs to be $3000 a year
Discuss the difficulties that the insurance company might face in offering this type of policy; that is, why might it be difficult for the insurance company to make a profit from this type of policy?
"Members of CORE said there are about 110,000 people waiting for an organ donation, but only about 25,000 transplants each year" (OVMC). Whether you agree with the concept or not, research the topic of organ donation, challenge the myths behind th..
Use comparative static analysis to illustrate (that means draw graphs) and describe what should happen to the equilibrium price and quantity in the markets for wild salmon and the Languedoc white wine, given just this information. Be specific but ..
The capital investment cost for a switchgrass-fueled ethanol plant with a capacity of 250,000 gallons per year if $1.4 million. The cost-capcaity factor for this particular plant technology is 0.59 for capacities ranging from 200,000 gallons per y..
Is the promise to match any lower price a substantive promise or an empty promise?
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