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Is the current allocation of inputs economically efficient? If not, in which direction should the firms change their allocation of labor and capital
Show what will happen in the international market for business services if foreign nations increase their demand for US business services.
What should the amount of a government-imposed excise tax be in order to bring about this optimal level of production?
Assume that the graph attached illustrates the marginal, average variable, and average total cost curves of a typical coffee grower
Why would individuals or firms engage in rent seeking behavior? How much will they spend on such behavior?
Why does the specification of one vote per person interfere with the ability to achieve economic efficiency?
Why is the paradox of voting a paradox? What, if anything, is undesirable about a voting scheme that cycles? How will issues be decided in such cases?
Which of the following is the primary disadvantage of producing inputs within a firm?
Why would each person voluntarily agree to the tax assessments determined under the Lindahl solution? What choice is he or she being asked to make?
Explain the distinction between these two situations. Why does the second lead to an inefficient allocation of resources but the first does not?
What is the Nash equilibrium of the secondstage game if the entrant enters? Solve the game for each type of incumbent.
A) Is Gigi making the utility-maximizing choice? Why or why not? B) If not, what should she do instead? Why?
If competitive firms have no signals available, what is equilibrium wage they would pay? Outline a pooling equilibrium in which neither type gets an education.
What do you think would be the effect of increases/decreases in the dollar's exchange value on the firm's profitability?
Compute a buyer's maximum willingness to pay for a car if he or she cannot observe the car's type.
In principle, could the Federal Reserve conduct monetary policy through the purchase and sale of stocks on the New York Stock Exchange?
Suppose they compete in a sealed-bid, secondprice auction. What are the equilibrium bidding strategies? Compute the seller's expected revenue.
You must decide whether to sign a contract under these terms or simply shut down your operations. What is your optimal decision?
As a consultant to Campus, compute: a. The payback period. b. The unadjusted rate of return. c. The net present value. d. The internal rate of return.
1. Determine the net present value and the profitability index for each project.
What is the forward price of your contract? What is the price of a forward price contractr otherwise identical to yours?
Under what condition on s and b would Will plan to study for the test? What condition is required for him to carry through on his plan?
In the first scenario, you are given a choice between gambles A and B. Which would you choose given your utility function?
Suppose both the 1-year and 11-year spot rates unexpectedly shift downward by 2 percent. What is the price of a forward contract otherwise identical to yours?
Provide the formula for the amount of money after d days provided by each prize. Graph your results for values of d ranging from 0 to 31 days.