Economics

Consider a hypothetical economy in which the marginal propensity to consume (MPC

Consider a hypothetical economy in which the marginal propensity to consume (MPC) is 0.5. The following graph shows the aggregate demand curves (AD_1 and AD_2), the short-run aggr…

Consider a hypothetical economy in which the marginal propensity to consume (MPC

Consider a hypothetical economy in which the marginal propensity to consume (MPC) is 0.50. That is, if disposable income increases by $1, consumption increases by 50. Suppose furt…

Consider a hypothetical economy where households send $0.75 of each additional d

Consider a hypothetical economy where households send $0.75 of each additional dollar they earn and sabe the remaining $0.25. The following graph shows the economy's initial aggre…

Consider a hypothetical economy where there are no taxes and no foreign trade an

Consider a hypothetical economy where there are no taxes and no foreign trade and households spend $0.60 of each additional dollar they earn and save the remaining $0.40. The marg…

Consider a hypothetical economy where there are no taxes and no foreign trade an

Consider a hypothetical economy where there are no taxes and no foreign trade and households spend $0.60 of each additional dollar they earn and save the remaining $0.40. The marg…

Consider a hypothetical economy where there are no taxes and no foreign trade, a

Consider a hypothetical economy where there are no taxes and no foreign trade, and households soend so.90 of each addtional dollar they earn and ave the remaining so.10. The margi…

Consider a hypothetical economy where there are no taxes and no international tr

Consider a hypothetical economy where there are no taxes and no international trade. Households spend $0.90 of each additional dollar they earn and save the remaining $0.10. If th…

Consider a hypothetical overlapping generations economy studies in class. Assume

Consider a hypothetical overlapping generations economy studies in class. Assume n = 0 and r = 0.1. The government oversees a PAYG SS system. It taxes each young in the amount of …

Consider a hypothetical three-stage screening test for a cancer with the followi

Consider a hypothetical three-stage screening test for a cancer with the following rates of detection and costs: Number of cases detected (cumulative) Total costs (cumulative) Cal…

Consider a labor market where the demand for a particular category of labor is g

Consider a labor market where the demand for a particular category of labor is given by the equation L_D = 20 - 2W. Suppose that the supply curve of workers in this market who are…

Consider a labor market. There are equal numbers of two kinds of workers, alphas

Consider a labor market. There are equal numbers of two kinds of workers, alphas and betas. When employed, alphas produce 8 units of output while betas produce 18 units. When unem…

Consider a lake found in the village of Sturbridge, and then answer the question

Consider a lake found in the village of Sturbridge, and then answer the questions that follow. The village has a hiking lodge whose visitors use the lake for recreation. The villa…

Consider a large open economy with a flexible exchange rate and free capital flo

Consider a large open economy with a flexible exchange rate and free capital flows. Suppose the country is enjoying full employment, a healthy budget surplus, and a large trade su…

Consider a large open economy with a flexible exchange rate and free capital flo

Consider a large open economy with a flexible exchange rate and free capital flows. Suppose the country is enjoying full employment, a healthy budget surplus, and a large trade su…

Consider a linear city of length 1 in which the consumers are uniformly distribu

Consider a linear city of length 1 in which the consumers are uniformly distributed. There are two firms located at the extremes of the linear city: firm 1 is located at the left-…

Consider a linear city of length L in which the consumers are uniformly distribu

Consider a linear city of length L in which the consumers are uniformly distributed. There are two firms located at the extremes of the linear city: firm 1 is located at the left-…

Consider a macroeconomic model of an economy in Long Run market equilibrium. Sup

Consider a macroeconomic model of an economy in Long Run market equilibrium. Suppose there were a shock which was going to cause a decrease in aggregate demand. a. What steps coul…

Consider a manufacturing firm operating a given scale of plant and some assembly

Consider a manufacturing firm operating a given scale of plant and some assembly equipment. Assume that the only input that the firm can change the amount of that can be used duri…

Consider a manufacturing plant with the cost function C(q) =300 +100q - 4q^2 + 0

Consider a manufacturing plant with the cost function C(q) =300 +100q - 4q^2 + 0.2q^3 a) Identify the fixed cost and variable cost components of the cost function. b) Derive the f…

Consider a many-person game of car commuters and bus commuters. Suppose that whe

Consider a many-person game of car commuters and bus commuters. Suppose that when there are no car commuters on the road, the payoff to bus commuters is 20 and the payoff to peopl…

Consider a market \"offer curve\" that is concave (from below). Where along this

Consider a market "offer curve" that is concave (from below). Where along this curve is Sheldon's utility likely to be maximized? Compare this to where Shelby is likely to maximiz…

Consider a market characterized by the following demand and supply conditions: P

Consider a market characterized by the following demand and supply conditions: Px=100-5Qx and Px=20+3Qx. The equilibrium price and quantity are, respectively: A: $50 and 10 units …

Consider a market comprised of three firms. Firm 1 produces and sells 23 units p

Consider a market comprised of three firms. Firm 1 produces and sells 23 units per period. Firm produces and sells 19 units per period, while firm 3's periodic production and sale…

Consider a market demand curve that can be expressed as P = 300 - 3 Q. Each of t

Consider a market demand curve that can be expressed as P = 300 - 3 Q. Each of the firms currently serving the market has a total cost function of the form C = 40 q so MC = ATC = …

Consider a market demand curve that can be expressed as P = 300 - 3 Q. Each of t

Consider a market demand curve that can be expressed as P = 300 - 3 Q. Each of the firms currently serving the market has a total cost function of the form C = 40 q so MC = ATC = …

Consider a market for a homgeneous product with demand given by Q = 37.5 - .25P.

Consider a market for a homgeneous product with demand given by Q = 37.5 - .25P. There are two firms, each with a constant marginal cost equal to 40. a. Determine the output and p…

Consider a market for disability insurance. Individuals in the economy become di

Consider a market for disability insurance. Individuals in the economy become disabled with probability q. When healthy, they earn $100, and when disabled their wage falls to $0. …

Consider a market for houses (the real estate market), which has suffered consid

Consider a market for houses (the real estate market), which has suffered considerable declines in both the quantity and price of houses traded in the market. Please identify at l…

Consider a market for used cars. There are 1,000 used cars, 500 of which are bad

Consider a market for used cars. There are 1,000 used cars, 500 of which are bad and 500 of which are good. The current owners of the used cars know their cars’ types. Those with …

Consider a market for used motor cycles. There are good quality and poor quality

Consider a market for used motor cycles. There are good quality and poor quality used motor cycles on the market. Any seller of good quality used motor cycles will accept a price …

Consider a market in which 2 firms produce identical products. The total cost to

Consider a market in which 2 firms produce identical products. The total cost to each firm to produce Q units is 4*Q. (In other words, the marginal cost of production is constant …

Consider a market in which firms are price-takers. The inverse demand function i

Consider a market in which firms are price-takers. The inverse demand function is p(Q) = 1 – Q, where p denotes the price of good Q. The production costs are C(Q) = mQ, with 0 &lt…

Consider a market in which there are 10000 potential buyers and 8000 potential s

Consider a market in which there are 10000 potential buyers and 8000 potential sellers of used cars. Each potential seller has one car, which is either of high quality or low qual…

Consider a market in which there are many potential buyers and sellers of used c

Consider a market in which there are many potential buyers and sellers of used cars. Each potential setler has one car which is either of high quality (a plum) or low quality (a l…

Consider a market in which there are many potential buyers and sellers of used c

Consider a market in which there are many potential buyers and sellers of used cars. Each potential seller has one car, which is either of high quality (a plum) or low quality (a …

Consider a market in which there are many potential buyers and sellers of used c

Consider a market in which there are many potential buyers and sellers of used cars. Each potential seller has one car, which is either of high quality (a plum) or low quality (a …

Consider a market served by a monopolist, FirmA. Anew firm,FirmB, enters the mar

Consider a market served by a monopolist, FirmA. Anew firm,FirmB, enters the market, and as a result, Firnm A lowers its priceto try to drive Firm B out of the market, This practi…

Consider a market where demand is P=10-2Q. There is a negative production extern

Consider a market where demand is P=10-2Q. There is a negative production externality of $2.50/unit of consumption. Supply is equal to ??=??2. a. What is market equilibrium? b. Wh…

Consider a market where demand is P=10-2Q. There is a negative production extern

Consider a market where demand is P=10-2Q. There is a negative production externality of $2.50 per unit of consumption. Supply is equal to P=Q/2. a. What is market equilibrium? b.…

Consider a market where demand is P=10-2Q. There is a negative production extern

Consider a market where demand is P=10-2Q. There is a negative production externality of $2.50/per unit of consumption. Supply is equal to p=q/2 1. What is the market equilbrium 2…

Consider a market where supply and demand are given by QXS = -12 + PX and QXd =

Consider a market where supply and demand are given by QXS = -12 + PX and QXd = 93 - 2PX. Suppose the government imposes a price floor of $44, and agrees to purchase and discard a…

Consider a market with demand P (Q) = 100 Q. Sup- pose that firms compete by set

Consider a market with demand P (Q) = 100 Q. Sup- pose that firms compete by setting prices in a Bertrand duopoly. Assume the following: firms can only set prices in full dollars.…

Consider a market with demand P (Q) = 422Q in which two firms compete. Firm 1 fa

Consider a market with demand P (Q) = 422Q in which two firms compete. Firm 1 faces TC1(Q) = 9Q and firm 2 faces TC2(Q) = 4Q. Suppose that firm 1 chooses their quantity first, the…

Consider a market with demand given by Q = 20/p^2. A firm has a constant margina

Consider a market with demand given by Q = 20/p^2. A firm has a constant marginal cost of 2 with no other fixed costs. Use the Lerner Index rule to answer the following questions.…

Consider a market with demand given by Q = 400/p^2. To enter the market a firm m

Consider a market with demand given by Q = 400/p^2. To enter the market a firm must first pay an entry cost of k, thereafter it ean produce at a constant marginal cost of 2 with n…

Consider a market with demand given by Q = 400/p^2. To enter the market a firm m

Consider a market with demand given by Q = 400/p^2. To enter the market a firm must first pay an entry cost of k, thereafter it can produce at a constant marginal cost of 2 with n…

Consider a market with demand given by Q = 400/p^2. To enter the market a firm m

Consider a market with demand given by Q = 400/p^2. To enter the market a firm must first pay an entry cost of k, thereafter it can produce at a constant marginal cost of 2 with n…

Consider a market with network externalities, where demand is Q- 100-1P. Let pri

Consider a market with network externalities, where demand is Q- 100-1P. Let price initially be $30, where current demand without network externalities would be 1 -130.00-2.00P. S…

Consider a market with the following aggregate inverse demand function. P(Q)= 51

Consider a market with the following aggregate inverse demand function. P(Q)= 51-3Q where Q is the aggregate quantity. Suppose the cost structure in this industry is C(Q)= 3Q Assu…

Consider a market with two firms (firm a and firm b). Both have zero costs of pr

Consider a market with two firms (firm a and firm b). Both have zero costs of production and produce an identical product. Denote output from firm a as q_a and that from firm b as…