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Assignment
1. Why a firm under perfect competition is called price taker? How the price is determined under perfectly competitive market?
2. Explain what is shut down price. How does it guide a firm in its decision whether to continue to operate or make exit in case the firm under perfectly competitive market in the short run incurs loses? Use diagram.
What is the Marginal Propensity to Consume (MPC)? What is the Marginal Propensity to Save (MPS)? Suppose in 2013 GDP will be $500 billion and Taxes and Transfer are the same as in 2012. Given this information, calculate the change in consumption be..
Who was the economist who invented the idea of monetarism?
Analyze how the law of demand applies to a recent purchase that you made. Describe how the product has changed in price and explain whether the price change is due to supply or demand.
What is the current level of competition on short haul international routes in Houston? Find the factors that would lead to a change in demand and/or supply.
Describe the possible losses to our society and the economy when people are unemployed.
How does backing currency really matter in a world where currency itself is almost extinct?
Many economists believe that the trend toward greater wage inequality across the U.S. economy was primarily caused by __________.
In the 1970s Congress imposed an "excess profits tax" on these companies. It did not do so this time? What does this change show about how our understanding of the way the price system works to allocate resources has evolved? If "excess profits" a..
Cash flows of two mutually exclusive projects are as follows. Project A costs $80,000 initially and will have a $15,000 salvage value after 3 years. The operating cost with this method will be $30,000 per year.
Explain difference between explicit and implicit costs of production. Explain reasoning behind U-shaped, long-run, average cost curve. Explain the law of diminishing marginal returns. Describe economies and diseconomies of scale.
Suppose Humphrey starts out with four pounds of food and seven gallons of water, while Lauren starts out with eight pounds of food and five gallons of water. Draw an Edge worth box that shows all possible allocations of these goods, and plot the endo..
develop a strategic plan for your chosen company based on their corporate mission and objectives. follow the six step
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