Economics

Assume that the market for rental cars (used for business purposes) is perfectly

Assume that the market for rental cars (used for business purposes) is perfectly competitive with the demand for this capital input given by: K=1 500-25v And the supply given by: …

Assume that the market for rubber bike tires in the town of “Cycle City” is a co

Assume that the market for rubber bike tires in the town of “Cycle City” is a competitive market and the demand for rubber tires is given by the inverse demand function PD = 100 –…

Assume that the market for rubber bike tires in the town of “Cycle City” is a co

Assume that the market for rubber bike tires in the town of “Cycle City” is a competitive market and the demand for rubber tires is given by the inverse demand function PD = 100 –…

Assume that the market for wind turbines is a Bertrand oligopoly with two produc

Assume that the market for wind turbines is a Bertrand oligopoly with two producers: General Electric (an American company) and Nordex (A German company). The U.S. market demand f…

Assume that the medical screening industry is perfectly competitive. Consider a

Assume that the medical screening industry is perfectly competitive. Consider a typical firm that is making short-run losses. Suppose the medical screening industry runs an effect…

Assume that the medical screening industry is perfectly competitive. Consider a

Assume that the medical screening industry is perfectly competitive. Consider a typical firm that is making short-run losses. Suppose the medical screening industry runs an effect…

Assume that the most efficient production technology available for making vitami

Assume that the most efficient production technology available for making vitamin pills has the cost structure given in the following table. Note that output is measured as the nu…

Assume that the most efficient production technology available for making vitami

Assume that the most efficient production technology available for making vitamin pills has the cost structure given in the following table. Note that output is measured as the nu…

Assume that the most efficient production technology available for making vitami

Assume that the most efficient production technology available for making vitamin pills has the cost structure given in the following table. Note that output is measured as the nu…

Assume that the pizza market is initially in equilibrium. Suppose that there is

Assume that the pizza market is initially in equilibrium. Suppose that there is a rise in a price of a hamburger. For consumers, pizza and hamburgers are substitutes in consumptio…

Assume that the potato chip industry in the Northwest in 2007 was competitively

Assume that the potato chip industry in the Northwest in 2007 was competitively structured and in long-run competitive equilibrium; firms were earning a normal rate of return, in …

Assume that the price elasticity of demand for movie theatres is -.85 during all

Assume that the price elasticity of demand for movie theatres is -.85 during all evening shows but for all afternoon shows the price elasticity of demand is -2.28. For the theatre…

Assume that the price of consumption is 1 and the price of a given public good i

Assume that the price of consumption is 1 and the price of a given public good is 1 as well. Furthermore, assume that there are two consumers with identical preferences represente…

Assume that the price of rubber increased at the same time that Michael Jordan,

Assume that the price of rubber increased at the same time that Michael Jordan, arguably the best NBA basketball player of all time, became famous. What do you expect to happen to…

Assume that the price of rubber increased at the same time that Michael Jordan,

Assume that the price of rubber increased at the same time that Michael Jordan, arguably the best NBA basketball player of all time, became famous. What do you expect to happen to…

Assume that the price of silk ties in a perfectly competitive market is $21 and

Assume that the price of silk ties in a perfectly competitive market is $21 and that the typical firm confronts the following costs: Instructions: Enter your response as a whole n…

Assume that the principal assets and liabilities appearing on the consolidate ba

Assume that the principal assets and liabilities appearing on the consolidate balance sheets of all commercial banks and all reserve banks are as follows( in billions): Commercial…

Assume that the product price is $2 per unit, the price of the factor of product

Assume that the product price is $2 per unit, the price of the factor of production is $40 per unit, and 8 units are being hired. Profit can be maximized by hiring _______ unit(s)…

Assume that the production function is given by Y = AK 0.5 L 0.5 , where Y is GD

Assume that the production function is given by Y = AK0.5L0.5, where Y is GDP, K is capital stock, and L is labor. The parameter A is equal to 10. Assume also that capital is 100,…

Assume that the quantity of CDs is measured on the horizontal axis, while the qu

Assume that the quantity of CDs is measured on the  horizontal axis, while the quantity of movie tickets is measured on  the vertical axis. If available income decreases, then the…

Assume that the quantity theory of money holds and that velocity is constant at

Assume that the quantity theory of money holds and that velocity is constant at 5. Output is fixed at its full-employment value of 10,000, and the price level is 2. a. Determine t…

Assume that the quantity theory of money holds and that velocity is constant at

Assume that the quantity theory of money holds and that velocity is constant at 5. Output is fixed at its full-employment value of 10,000, and the price level is 2. a.Determine th…

Assume that the rental cost of skydiving gear is $95 and hiring skydiving instru

Assume that the rental cost of skydiving gear is $95 and hiring skydiving instructor costs $130. If Jennifer goes skydiving, she would also wear the helmet she bought last summer …

Assume that the required reserve ratio is 20 percent. What is the maximum increa

Assume that the required reserve ratio is 20 percent. What is the maximum increase in money supply for the banking system as a whole following a $12,000 injection into the banking…

Assume that the required resets c ratio is 20% and a consumer deposits $2,000 in

Assume that the required resets c ratio is 20% and a consumer deposits $2,000 in a hank and that this currency is added to the hank's reserves. Assume thai the hank had no excess …

Assume that the short-run equilibrium output and price combination (Yeq,Peq) in

Assume that the short-run equilibrium output and price combination (Yeq,Peq) in a closed economy is characterized by the point where the aggregate demand curve AD intersects the s…

Assume that the spot exchange rate between the dollar and the Swiss franc is a f

Assume that the spot exchange rate between the dollar and the Swiss franc is a floating, or flexible, rate. Use a supply and demand model to graph the effects of each of the follo…

Assume that the spot rate is €0.8144/$, the 180-day forward rate is €0.7933/$, a

Assume that the spot rate is €0.8144/$, the 180-day forward rate is €0.7933/$, and the 180-day dollar interest rate is 6 percent per year. What is the 180-day euro interest rate p…

Assume that the supply and demand curves are normally shaped. In each question,

Assume that the supply and demand curves are normally shaped. In each question, at most one curve will shift. Use the following code to indicate each of your answers: a. Demand in…

Assume that the supply and demand curves in a market are described by the follow

Assume that the supply and demand curves in a market are described by the following equations. SUPPLY:Qs=(0.25).P-0.5 DEMAND :Qd=18.5-(0.25).P Answer the following questions. a. W…

Assume that the table below summarizes the income of Paraguay. Category Wages In

Assume that the table below summarizes the income of Paraguay. Category Wages Interest Total business expenditures Total business revenues Value (billions of $) 8.3 0.7 21.0 30.0 …

Assume that the total annual inventory cost for a particular item carried in inv

Assume that the total annual inventory cost for a particular item carried in inventory is TC(Q) = annual cost of ordering + annual cost of carrying inventory, TL/year =P* A/Q + (0…

Assume that the total value of the following items is $600 billion in a specific

Assume that the total value of the following items is $600 billion in a specific year for Upper Mongoose: net exports = $50 billion; value of new goods and services produced in th…

Assume that the total value of the following items is $600 billion in a specific

Assume that the total value of the following items is $600 billion in a specific year for Upper Mongoose: net exports = $50 billion; value of new goods and services produced in th…

Assume that the unemployment rate is 7% and GDP is $4,000 billion. What is a rou

Assume that the unemployment rate is 7% and GDP is $4,000 billion. What is a rough estimate of the potential GDP if the NAIRU is 5%?Assume that potential GDP is growing at 3% annu…

Assume that the wage-skill level relationship in one’s home country W(H) and i

Assume that the wage-skill level relationship in one’s home country W(H) and in the United States W(US) is given by the equations below. W(H) = 500 + 2S W(US) = 325 + 2.5S, wher…

Assume that the world price of Good A is $8 per unit while its domestic price is

Assume that the world price of Good A is $8 per unit while its domestic price is $6, and the marginal cost incurred by domestic producers for producing one unit of Good A is $5. I…

Assume that the world price of Good A is $8 per unit while its domestic price is

Assume that the world price of Good A is $8 per unit while its domestic price is $6, and the marginal cost incurred by domestic producers for producing one unit of Good A is $5. I…

Assume that the world works according to the Classical model. In a small open ec

Assume that the world works according to the Classical model. In a small open economy, output us produced according to the production function Y = AKa L(1-a), cosumption is equal …

Assume that there are a large number of identical firms in a competitive industr

Assume that there are a large number of identical firms in a competitive industry, each with the cost function: TC = 25+4q+q2 a. What is the minimum price at which firms will cont…

Assume that there are five apartments located at different distances from an ind

Assume that there are five apartments located at different distances from an individual place of work: very close, close, far, very far and extremely far. The individual makes his…

Assume that there are four consumers (A, B, C, and D), each with their individua

Assume that there are four consumers (A, B, C, and D), each with their individual maximum willingness to pay for a product. Assume that there are four sellers (W, X, Y, and Z), ea…

Assume that there are three firms in the industry; two high-cost firms, say firm

Assume that there are three firms in the industry; two high-cost firms, say firm A and firm B, and one low-cost firm, say firm C. The inverse demand function for the good is given…

Assume that there are two complementary products, A and B, where the quantity of

Assume that there are two complementary products, A and B, where the quantity of B is variable relative to a single unit of A. There are two types of consumers, High and Low-deman…

Assume that there are two complementary products, A and B, where the quantity of

Assume that there are two complementary products, A and B, where the quantity of B is variable relative to a single unit of A. There are two types of consumers, High and Low-deman…

Assume that there are two countries in the world, Brazil and India, and they can

Assume that there are two countries in the world, Brazil and India, and they can produce two goods, Coffee and Tea. The following table tells us the maximum amount that each count…

Assume that there are two countries in the world, Brazil and India, and they can

Assume that there are two countries in the world, Brazil and India, and they can produce two goods, Coffee and Tea. The following table tells us the maximum amount that each count…

Assume that there are two countries in the world, Brazil and India, and they can

Assume that there are two countries in the world, Brazil and India, and they can produce two goods, Coffee and Tea. The following table tells us the maximum amount that each count…

Assume that there are two countries, Argentina and Brazil, each producing wheat

Assume that there are two countries, Argentina and Brazil, each producing wheat and wine from capital labor. Suppose that Argentina has abundant capital and scarce labor when comp…

Assume that there are two technologies for producing car batteries (for large tr

Assume that there are two technologies for producing car batteries (for large trucks): (a) Long-lasting blades: Each battery lasts for 40 months. Each costs C_L = $240 to produce,…