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The income elasticity of demand for VCRs is 1.7. The cross-price elasticity of demand for VCRs with respect to DVDs is 0.8. Use this information to predict the annual number of VCRs sold under the
if a graph contains two seperte demand curves, D1 and D2, the marginal revenue curve associated with each one MR1 and MR2, a total marginal revenue curve, MRt, along with marginal cost. What is the
In a waiting line model situation, arrivals occur around the clock at a rate of six per day, and the service occurs at one very three hours. Assume the Poisson and exponential distributions.
In the mid 1990s, Japan's annual money supply growth rate fell to 1-2 percent from an average annual rate of 10-11 percent in the late 1980s. Explain what effect did this decline have on: (Total 200
What are the characteristics of a Perfectly Competitive Market? What are the Characteristics of a Monopoly?
What did classical economists assume about the flexibility of prices, wages, and interest rates? What did this assumption imply about the self-correcting tendencies in an economy in recession? What
Domestic producers often base their claim for import protection on the fact that workers in country X are paid substandard wages. Is this a valid argument for protection?
What is the total subsidy that the firm receives at this optimal level of emissions? The total abatement cost of the firm at the optimal level of emissions?
Propose a monetary policy action that could eliminate a recessionary gap in the short run. In what way might society gain if the Fed implements the policy you have proposed instead of simply permitti
In contrast to a socialist economic organization, how would a capitalist system differ? Consider who owns the capital (means of production) in the two models.
What basic principles does the production possibilities (or transformation) curve illustrate? Consider whether an increase in the production of one good requires an increase or decrease in the prod
Difference between antitrust policy, industrial regulation and social regulation.
Develop a linear equation that can be used to describe how the price depends on the processor speed. Based on your regression equation, is there one machine that seems particularly over- or underprice
In the studying of monopoly and monopolistic competition, what are the long-run effects on prices, output, and profits in these industries (patent expiration for monopolies, entry into monopolistic
Find an expression for the marginal product of labor, MPL, when the amount of capital is fixed at 16 units.
What are the causes of a self-fulfilling currency crisis? Does such a crisis depend on the central bank's interest rate policy? How? Explain using an appropriate diagram.
Assume realistically that the Canadian dollar is floated against the U.S. dollar. Use the IS-LM-FX model to explain the effects of a temporary monetary expansion in the U.S. on the following variabl
If the price of capital is $24, the price of labor is $15, and the marginal product of capital is 16, the least costly combination of capital and labor requires that the marginal product of labor b
Explain the cutthroat competitor's reasons for not raising or lowering his/her price, thereby accounting for the kink in the demand curve?
Suppose you were given a gift of a gold mine that generates $1,000 of net income every year, indefinitely. And suppose the equilibrium rate of interest is 5 percent. What is the present value of th
Compute the autonomous and induced expenditure from the following data, where AE is the total expenditure and Y is the total income.
What is the final impact of contractionary fiscal policy on the price-level and real output?
What is the current business cycle situation in the U.S. today (Fall 2009)? Discuss each sector of aggregate demand (C+I+G+X), interest rates, and inflation.
What major advantages of corporations have given rise to their dominance as form of business organization?
Draw the payoff matrix for the possible one- shot (non repetitive) outcomes using game theory. What are the assumptions underlying each outcome.