Get college assignment help at uniessay writers What is the basic objective of monetary policy? Why is monetary policy easier to conduct than fiscal policy in a highly divided national political environment?
4. (40 total points) Suppose a monopolist faces the following demand curve: P = 596 – 6Q. Marginal cost of production is constant and equal to $20, and there are no fixed costs. a) (8 points) What is the monopolist’s profit maximizing level of output? b) (8 points) What price will the profit maximizing monopolist produce? c) (8 points) How much profit will the monopolist make if she maximizes her profit? d) (8 points) What would be the value of total consumer surplus if the market were perfectly competitive?
One advantage of automatic fiscal policy over discretionary fiscal policy is that automatic fiscal policy:
The U.S. Justice Department would most likely block a merger between: A) Walt Disney and Coca Cola. B) Sony and Home Depot. C) Wal-Mart and Subway Sandwiches. D) Boeing and Airbus.
Initially, suppose all retailers sell the basic version of Vista for $200. Suppose Circuit City were to raise the price at which it sells Vista to $300, but the rest of the retailers were to keep their prices the same. Which of the following would happen? (Assume customers are perfectly informed about prices, and that they can just as easily go to any store.)
A labor contract provides for a first-year wage of $20 per hour, and specifies that the real wage will rise by 10 percent in the second year of the contract. The CPI is 1.00 in the first year and 1.1 in the second year. What dollar wage must be paid in the second year?
Written Assignment – The Federal Reserve Board of Governors Complete a one page answer to the following questions. • Should the Federal Reserve Board of Governors remain independent? • What is the strongest argument on either side?
Think of a business in your local area. Describe its operation in terms of factor markets and product markets.
If an individual”s labor supply curve slopes forward at low wages and bends backward at high wages, is leisure a Giffen good?
Explain how an increased federal budget deficit resulting from a recession can actually help stabilize an economy.
Get college assignment help at uniessay writers Describe how adjustments in wages and prices take the economy from the short-run equilibrium to the long-run equilibrium.
I need help with this entire assignment. My e-mail is firstname.lastname@example.org and it is due tonight (Sunday, October 31, 2010 at 11:55PM). Help me please with this economics homework. I NEED THE MOST HELP WITH QUESTIONS 1 and 4! The table for question 1 – I do not understand how to calculate the values. Question 4 I do not know what to calculate for any of the parts a,b,c,d,e. THANK YOU VERY MUCH FOR YOUR HELP!
Saving is always equal to: (1 point) a. planned investment less unintended increases in inventories. b. actual investment. c. planned investment. d. unintended changes in inventories.
Assignment #1:economic 100 This assignment supports the lesson objectives Assignment Overview This assignment requires you to write a report that answers questions that explore economic analysis and modern problems and the economic way of thinking. Deliverables You will post your report document to a dropbox. Assignment Details Assignment # 1 – Principles of Economics You are to write a four to ten (4-10) page report that answers the following: 1. You own a local sub shop in a college town. You primarily serve two groups of people: local residents (both students and other local residents) and visitors to your town. Devise a price discrimination strategy that will increase your revenues compared to a single-pricing strategy. 2. Suppose the cable TV industry is currently unregulated. However, due to complaints from consumers that the price of cable TV is too high, the legislature is considering placing a price ceiling on cable TV below the current equilibrium price. If the government does make this price ceiling law, diagram and explain the effects with supply and demand analysis. If the cable TV company is worried about disgruntling customers, suppose that the company may introduce a different type of programming that is cheaper for the company to provide yet is equally appealing to customers. Explain what would be the effects of this action. 3. Consider a perfectly competitive market. Analyze and explain in detail using graphical tools to show what you expect to happen to the number of firms and firm profitability in the short run and long run a) if demand for the product falls and b) if demand for the product rises. 4. Discuss why some long-run average cost curves are steeper on the downward side than others. Discuss fully. 5. If you purchased a new model of a digital camera right after it is released, you will likely pay more than if you purchase it six months after release. Explain why this is an example of price discrimination on the part of the firm. 6. Explain the rationale and the implications of the new guidelines used by the Department of Justice and the Federal Trade Commission for evaluating proposed mergers. The format of the report is to be as follows: o Typed, double spaced, Times New Roman font (size 12), one inch margins on all sides, APA format. o Use headers for each of the criteria, followed by your response. o In addition to the 4-10 pages required, a title page is to be included. The title page is to contain the title of the assignment, your name, the instructor’s name, the course title, and the date. NOTE: You will be graded on the quality of your answers, the logic/organization of the report, your language skills, and your writing skills.
According to Keyenes, market-driven economies: a) are typically self-adjustin b) are inherently unstable c) required a policy of laissez-faire d) are always in a long run equilibrium
Assuming no government intervention, describe the market behavior that should result if the price of a product is below its equilibrium price; then describe the behavior that should occur if the price is above its equilibrium price.
Ludmilla’s House of Schnitzel is currently producing 10 schnitzels a day at point A on the following diagram.
Ozark Bottled Water Products, Inc. hired a marketing consulting firm to perform a test marketing of its new brand of spring water called Liquid Ozarka. The marketing experts selected 15 small and medium-sized towns in Arkansas and Missouri for a one-month-long sales test. For one month, Liquid Ozarka was sold at a variety of prices ranging from $3 per gallon to $4 per gallon. Specifically, in three of the markets, price was set by the marketing experts at $3 per gallon. In three more markets, price was set at $3.25 per gallon, and so on. The prices charged in each market (P) are shown in the table below. For each of the 15 market areas, the marketing consultants collected data on average household income (M), the population of the marketing area (N), and the price of a rival brand of bottled water (PR). At the end of the month, total sales of Liquid Ozarka (Q) were tabulated to provide the following data from which the consultants estimated an empirical demand function for the new product. Market P M PR N Q 1 $3.00 $45,586 $2.75 274,000 7,952 2 3.00 37,521 3.50 13,450 8,222 3 3.00 41,333 2.64 54,150 7,166 4 3.25 47,352 2.35 6,800 6,686 5 3.25 51,450 2.75 11,245 7,715 6 3.25 27,655 3.15 54,500 6,643 7 3.50 30,265 2.55 26,600 5,155 8 3.50 39,542 3.00 158,000 7,127 9 3.50 41,596 2.75 22,500 5,834 10 3.75 42,657 2.45 46,150 5,093 11 3.75 36,421 2.89 8,200 5,828 12 3.75 47,624 2.49 38,500 6,590 13 4.00 50,110 3.15 105,000 6,228 14 4.00 57,421 2.80 92,000 7,218 15 4.00 38,450 2.90 38,720 5,846 A. Using the marketing data from the 15 test markets shown above, estimate the parameters of the linear empirical demand function: 1. Using the appropriate tests, Evaluate the significance of the regression as a whole and the significance of the individual parameters at 5% level of significance. (show all your steps and procedure). If any of the parameter estimates are not significant at the 2 percent level of significance, drop the associated explanatory variable from the model and estimate the demand function again. a. Your final estimated linear demand function for Liquid Ozarka is _______________________________________. b. What percentage of the variation in sales of Liquid Ozarka is explained by your estimated demand function? 2. The marketing consultants describe a “typical” market as one in which the price of Liquid Ozarka is $3.50 per gallon, average household income is $45,000, the price of rival bottled water is $3 per gallon, and the population is 75,000. Answer the following questions for this “typical” market scenario. a. What is the estimated elasticity of demand for Liquid Ozarka? Is demand elastic or inelastic? What would be the percentage change in price required to increase sales of Liquid Ozarka by 10 percent? b. What is the estimated income elasticity of demand? Is Liquid Ozarka a normal or inferior good? A 6 percent increase in average household income would be predicted to cause what percentage change in sales of Liquid Ozarka? c. What is the estimated cross-price elasticity of demand for Liquid Ozarka with respect to changes in price of its rival brand of bottled water? Does the estimated cross-price elasticity have the expected algebraic sign? Why or why not? If the price of the rival brand of water rises by 8 percent, what is the estimated percentage change in sales of Liquid Ozarka? B. Using the marketing data from the preceding 15 test markets, estimate the parameters for the log-linear empirical demand function: 1. Using the P-Values, if any of the parameter estimates are not significant at the 2 percent level of significance, drop the associated explanatory variable from the model and estimate the demand function again. c. Your final estimated log-linear demand function for Liquid Ozarka is _______________________________________. 2. Does a log-linear specification work better than a linear specification of demand for Liquid Ozarka? Explain by comparing F-ratios, R2s, and t-ratios (or p-values). 3. Using the estimated log-linear demand function, compute the price, income, and cross-price elasticity of demand. How do they compare to the estimated elasticity for the linear demand specification? 4. What is the estimated quantity demand based on the values of explanatory variables given above?
Ninety-one-day Treasury bills carry an investment return (IR) of 6.25 percent. What is their purchase price? What is their discount rate (DR)?
CHAPTER 12 – TECHNOLOGICAL PROGRESS AND GROWTH MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. A represents technological progress. 1) Assume the production function is represented by the following: Y = f(K, AN). Given this production function and the constant returns to scale assumption, output will increase by 5% when which of the following occurs? A) K or AN increase by 5% B) K and AN increase by 5% C) N and AN increase by 5% D) N or AN only increase by 5% E) all of the above Use the information below to answer the following questions: (1) the rate of depreciation is 12% per year, (2) the population growth rate is 2% per year, and (3) the growth rate of technology is 3% per year. 2) Which of the following equals the annual growth rate of “effective labor” in the steady state in this economy? A) 2% B) 3% C) 5% D) 12% E) 17% 3) Which of the following represents the level of investment needed to maintain constant capital per effective worker (K/NA) in this economy? A) .02K B) .03K C) .05K D) .12K E) .17K 4) Which of the following represents the steady-state growth rate of output in this economy? A) 2% B) 3% C) 5% D) 12% E) 17% 5) Which of the following represents the steady-state growth rate of output per worker in this economy? A) 2% B) 3% C) 5% D) 12% E) 17% 6) Which of the following will cause a permanent reduction in the steady-state growth rate of output? A) a reduction in the growth rate of technological progress B) a reduction in the saving rate C) an increase in the population growth rate D) all of the above E) none of the above 7) Which of the following is always true after an economy reaches a balanced growth equilibrium? A) The growth rate of capital is equal to the growth rate of the effective work force. B) The growth rate of output equals the rate of depreciation. C) The growth rate of capital is equal to the savings rate. D) Population growth is zero. E) None of the above 8) Suppose output per worker in a country has grown at the same rate as technology over for many years. This country’s growth would be described as: A) “diffuse” growth. B) “balanced” growth. C) “effective” growth. D) “appropriable” growth. E) none of the above 9) The slowdown of growth in the rich countries since 1973 has probably been caused by: A) low capital accumulation. B) a decrease in the rate of technological progress. C) a low savings rate. D) all of the above E) none of the above 10) Assume that an economy experiences both positive population growth and technological progress. In this economy, which of the following is constant when balanced growth is achieved? A) Y/NA B) K/N C) K D) NA E) none of the above 11) Assume that an economy experiences both positive population growth and technological progress. Once the economy has achieved balanced growth, we know that output (Y) is: A) growing at a rate of gA. B) constant. C) growing at a rate of gA – gN. D) growing at a rate of gN. E) growing at a rate of gA gN. 12) Assume that an economy experiences both positive population growth and technological progress. Once the economy has achieved balanced growth, we know that the output per effective worker ratio (Y/NA) is: A) growing at a rate of δ gA gN. B) growing at a rate of gA gN. C) growing at a rate of gA. D) growing at a rate of gN. E) none of the above 13) Assume that an economy experiences both positive population growth and technological progress. Once the economy has achieved balanced growth, we know that the output per worker ratio (Y/N) is: constant. B) growing at a rate of gA – gN. C) growing at a rate of gN. D) growing at a rate of δ gA gN. E) growing at a rate of gA. 14) Since 1973, the rate of growth of output per capita has declined for a number of countries. Analysis of the data suggests that this slowdown has been caused by: A) a reduction in the growth rate of technological progress. B) a reduction in the accumulation of capital. C) a reduction in the rate of growth of N. D) a reduction in the saving rate. Use the following information answer the questions below δ = .11 gA = .03 gN = .02 15) Given this information, we know that effective labor (NA) grows at which rate? A) 0 B) 1% C) 4% D) 5% E) 15% 16) Which of the following represents the amount of investment per effective worker needed to maintain a constant level of capital per effective worker (K/NA)? A) .02(K/NA) B) .03(K/NA) C) .05(K/NA) D) .13(K/NA) E) .16(K/NA) 17) Given this information, the steady state rate of growth of Y/NA is: A) 0. B) 2%. C) 3%. D) 5%. E) 16%. 18) Given this information, the steady state rate of growth of output per worker is: A) 0. B) 2%. C) 3%. D) 5%. E) 16%. 19) Given this information, the steady state rate of growth of output is: A) 0. B) 2%. C) 3%. D) 5%. E) 16%.
a.What is the minimum price necessary for this firm to produce any output in the short run? Suppose that TC=100 15q b. MC=4q. the perfectly competitive firm maximizes profits by producing 10 units of output. at what price does it sell these units ??
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