Economics

Assume a firm is currently employing 20 units of capital and 100 units of labor

Assume a firm is currently employing 20 units of capital and 100 units of labor in its production process. Assume also that the marginal product of the 20th unit of capital is 40 …

Assume a firm is currently employing 20 units of capital and 100 units of labor

Assume a firm is currently employing 20 units of capital and 100 units of labor in its production process. Assume also that the marginal product of the 20th unit of capital is 40 …

Assume a firm is currently employing 20 units of capital and 100 units of labor

Assume a firm is currently employing 20 units of capital and 100 units of labor in its production process. Assume also that the marginal product of the 20th unit of capital is 40 …

Assume a firm produces 500 units of a good by using two inputs, capital and labo

Assume a firm produces 500 units of a good by using two inputs, capital and labor, whose per unit prices are $10 and $4. Assume also that the marginal physical product of the last…

Assume a firm produces 500 units of a good by using two inputs, capital and labo

Assume a firm produces 500 units of a good by using two inputs, capital and labor, whose per unit prices are $10 and $4. Assume also that the marginal physical product of the last…

Assume a firm produces 500 units of a good by using two inputs, capital and labo

Assume a firm produces 500 units of a good by using two inputs, capital and labor, whose per unit prices are $10 and $4. Assume also that the marginal physical product of the last…

Assume a firm produces 500 units of a good by using two inputs, capital and labo

Assume a firm produces 500 units of a good by using two inputs, capital and labor, whose per unit prices are $10 and $4. Assume also that the marginal physical product of the last…

Assume a firm reduces its cost by shifting from paychecks to payroll cards, whic

Assume a firm reduces its cost by shifting from paychecks to payroll cards, which are stored-value cards onto which the companies can download employees' wages and salaries electr…

Assume a firm wishes to maximize profits (or minimize losses). If the firm is pr

Assume a firm wishes to maximize profits (or minimize losses). If the firm is producing an output level in which: a.) marginal revenue exceeds marginal cost then it should increas…

Assume a firm\'s average total cost equals $75 and average variable cost equals

Assume a firm's average total cost equals $75 and average variable cost equals $65 at the current level of production. If the marginal cost of producing the next unit equals $60, …

Assume a firm\'s short-run marginal cost is less than the short-run average cost

Assume a firm's short-run marginal cost is less than the short-run average cost. If the firm increases its output level, will the firm's average cost increase or decrease? Explain…

Assume a good where its equilibrium price is 40 and its equilibrium quantity is

Assume a good where its equilibrium price is 40 and its equilibrium quantity is 3.0 units. Compute the supply surplus when price is 60. Take into consideration that the elasticity…

Assume a good where its equilibrium price is 40 and its equilibrium quantity is

Assume a good where its equilibrium price is 40 and its equilibrium quantity is 3.0 units. Compute the supply surplus when price is 60. Take into consideration that the elasticity…

Assume a government wants to promote affordable housing. Which of the following

Assume a government wants to promote affordable housing. Which of the following options would give higher utility to the recipients: a housing voucher usable in the private housin…

Assume a hypothetical economy in which the velocity is constant at 2 and real GD

Assume a hypothetical economy in which the velocity is constant at 2 and real GDP is always at a constant potential of $4,000. Suppose the money supply is $1,000 in the first year…

Assume a hypothetical economy in which the velocity is constant at 2 and real GD

Assume a hypothetical economy in which the velocity is constant at 2 and real GDP is always at a constant potential of $4,000. Suppose the money supply is $1,000 in the first year…

Assume a large world economy with several countries. There is a good that can be

Assume a large world economy with several countries. There is a good that can be produced domestically by every country in the absence of trade. Suppose Country 1 has the followin…

Assume a linear market demand curve and a concave average cost curve for the fol

Assume a linear market demand curve and a concave average cost curve for the following questions: (a) Show how an incumbent can keep an entrant out of the market by threatening to…

Assume a local gluten-free pizzeria, on Harrison street, reported the following

Assume a local gluten-free pizzeria, on Harrison street, reported the following results for June and July June July Unit Sales 2,500 2,900 Cost of Food Sold $10,000 $10,600 Fixed …

Assume a monopolist does not practice price discrimination. Which of the followi

Assume a monopolist does not practice price discrimination. Which of the following must be true for a monopolist at an output level where price (P) is equal to marginal cost (MC)?…

Assume a monopolist faces a market demand curve P = 100 2Q, and has the followin

Assume a monopolist faces a market demand curve P = 100 2Q, and has the following cost functions: T C = 640 + 20Q; MC = 20. What is the profit-maximizing level of output? What are…

Assume a monopolist faces two markets for its product and can keep the markets s

Assume a monopolist faces two markets for its product and can keep the markets separable. You are given the following information: The demand curve for market A is PA = 300 -6QA T…

Assume a monopolist firm has the cost function C = 10800 +-Q2 And faces the dema

Assume a monopolist firm has the cost function C = 10800 +-Q2 And faces the demand function p = 5000-3Q Find the equation for marginal cost Find the equation for marginal revenue …

Assume a monopolistic employer is paying a wage rate of Wm and hiring Qm workers

Assume a monopolistic employer is paying a wage rate of Wm and hiring Qm workers, as indicated in Figure 13.8. Now suppose an industrial union is formed that forces the employer t…

Assume a perfectly competitive firm is in long-run equilibrium and there is a de

Assume a perfectly competitive firm is in long-run equilibrium and there is a decrease in market demand for the firm's output. Which of the following will occur a. Existing firms …

Assume a perfectly competitive firm\'s short-run cost is TC=100+160Q+3Q^2.If the

Assume a perfectly competitive firm's short-run cost is TC=100+160Q+3Q^2.If the market price is $196,what should it do? Produce 5 units and continue operating produce 6 units and …

Assume a perfectly competitive market and consider the following short-run cost

Assume a perfectly competitive market and consider the following short-run cost function: c(y) = y^3 - 8y^2 + 30y + 5 (a) Derive the marginal cost function MC(y). (b) What is the …

Assume a price floor is imposed in the wheat market at the equilibrium price and

Assume a price floor is imposed in the wheat market at the equilibrium price and that a price ceiling is imposed in the gasoline market at the equilibrium price. An increase in su…

Assume a production economy with a finite supply of capital and labor and two fi

Assume a production economy with a finite supply of capital and labor and two firms that are perfect substitutes. (So that the price of the goods they sell are equal to one.) Let …

Assume a reserve requirement of 10 percent. A commercial bank has total reserves

Assume a reserve requirement of 10 percent. A commercial bank has total reserves of $100,000, excess reserves of $25,000, and total checkable deposits outstanding of $750,000) If …

Assume a simple closed Keynesian model where the MPC is 0.75 and the MPIM is 0.1

Assume a simple closed Keynesian model where the MPC is 0.75 and the MPIM is 0.15. Also assume that potential real GDP is $1000 million, while actual (equilibrium) real GDP is $70…

Assume a single firm in a purely competitive industry has variable costs as indi

Assume a single firm in a purely competitive industry has variable costs as indicated in the following table in column. Complete the table and answer the questions. (a) At a produ…

Assume a single firm in a purely competitive industry has variable costs as indi

Assume a single firm in a purely competitive industry has variable costs as indicated in the following table in column 2. Complete the table and answer the questions. (1) Total pr…

Assume a single firm in a purely competitive industry has variable costs as indi

Assume a single firm in a purely competitive industry has variable costs as indicated in the following table in column 2. Complete the table and answer the questions. (1) Total pr…

Assume a town that stretches out along a main road that is 1 mile long. There ar

Assume a town that stretches out along a main road that is 1 mile long. There are two companies (A & B) that have decided to open up gas stations along this mile stretch. Assu…

Assume a two-country US and Japan, two-good, two-factor of production world wher

Assume a two-country US and Japan, two-good, two-factor of production world where the following relationships hold: K/L)Us(K/LJapan (K/L)automobiles (K/L)shoes Where (K/L)us is th…

Assume a two-sector income determination model where consumption depends on inco

Assume a two-sector income determination model where consumption depends on income and investment is autonomous, so that: and equilibrium occurs where Y-C+I (a) Solve for the equi…

Assume a typical PRODUCT market. Show graphically how the effects of an increase

Assume a typical PRODUCT market. Show graphically how the effects of an increase in supply will differ according to the elasticities of supply and demand. a) Illustrate the follow…

Assume a worker (W) can produce output (X) for an employer by increasing his eff

Assume a worker (W) can produce output (X) for an employer by increasing his effort (E) according to the following equation: X = (1.5)E. Assume that the compensation paid by the e…

Assume a world consists of only two countries: Latvia and Bulgaria, which can pr

Assume a world consists of only two countries: Latvia and Bulgaria, which can produce only two goods: lemons and beef. Latvia can produce 1000 tons of lemons or 500 tons of beef o…

Assume a world with two countries – the U.S. and Japan, where only two products

Assume a world with two countries – the U.S. and Japan, where only two products can be produced – Apples and MP3 players. The table shows labor hours to make each product in each …

Assume a world with two economies, Mexico and Canada. Each country is capable of

Assume a world with two economies, Mexico and Canada. Each country is capable of producing two important agricultural products: peppers and potatoes. Assume each country has the f…

Assume all banks have the same reserve requirement, 10% and you just remember yo