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# Applied Economics

### Pricing Strategy

A market has only two sellers. They are both trying to decide on a pricing strategy. If both firms charge a high price, then each firm will experience a 5% increase in profits. If both firms charge a low price, then each firm will experience a 3% increase in profits. If Firm 1 charges a high price and Firm 2 charges a low price,

### Statistical Quality Control

Small boxes of NurtraFlakes cereal are labeled "net weight 10 ounces." Each hour, random samples of size n = 4 are weighed to check process control Five hours of observations yielded the following: Weight Time Box 1 Box 2 Box 3 Box 4 9 a.m. 9.8 10.4 9.9

### MBA economics

In a particular region, there are two lakes rich in fish. The quantity of fish caught in each lake depends on the number of persons who fish in each according to Q1= 10N1-.1N1^2 and Q2=16N2-.4N2^2 where N1 and N2 denote the number of fishers at each lake. In all, there are 40 fishers. Suppose N1=16 and N2=24. At which lake i

### How would you find the GNP at market price and the GNP from the data provided

year1 year 5 Consumption 600 960 Investment 134 340 Property Income earned overseas 75 120 property income paid overseas 95 95 Subsidies

### Finding the GNP at Market Price and the GNP from the Data

Find the GNP at market price and the GNP from the data. year1 year 5 Consumption 600 960 Investment 134 340 Property Income earned overseas 75 120 property income pa

### Hedging Foreign Exchange Risk: Euros and USD Currency

1. A U.S. importer who owns a Belgian company 500,000 Euros payable 30 days from today expects that U.S. dollars will weaken during this period. What would you advise the importer to do? What would happen if the U.S. dollars were to strengthening during this period? 2. A U.S. importer purchases a currency option. If the fore

### isocost and isoquant example

1. Suggest the new leadership in Congress decides to repeal some of the tax breaks granted to large businesses during the past several years. If investment tax credits granted earlier are either repealed or eliminated, what impact will the repeal have on the exporting of jobs to foreign countries? Explain using isoquant/isoco

### Marginal Product of Labour and Capital

Suppose that Japanese and U.S automakers produce on identical isoquats and that wages are higher in Japan than in the United States. Do autoworkers in Japan have a higher marginal product than American autoworkers?

### Present value

When the net present value is positive: a) the internal rate of return equals the cost of capital b) the internal rate of return exceeds the cost of capital c) the internal rate of return is less than the cost of capital d) the internal rate of return equals zero

### GDP

I am wondering if GDP per capita in a country like Switzerland can have a low GDP per capita but still have a high standard of living, as compared to say the US GDP per capita. If this were true, what could we say further about GDP per capita.

### Black Scholes Model - Value of a Call Option

For a call option on a non-dividend paying stock, the strike price is \$29, the stock price is \$30, the risk-free rate is 6% per annum, the volatility is 20% per annum and the time to maturity is 3 months. What is the price of the call option? a. \$2.02 b. \$2.35 c. \$2.67 d. \$2.89 e. None of the above.

### Net benefit of a college education

A high school graduate is considering whether to attend college. He predicts that his earnings, if she doesn't attend college, will be \$25,00 per year (real). he predicts that his earning after four years of college will be \$37,000. tuition costs are \$5,000 per year. assume that college begins at age 18 and ends at age 22, and t

### competitive economy

Consider a competitive economy that had 4 different jobs that vary by wage and risk risk (r) wage (w) job 1 1/5 \$3 job 2 1/4 \$12 job 3 1/3 \$23 job 4 1/2 \$25 all workers are equally productive but workers vary in their preferences. conside

### Cost of Running a Store

Bob runs a hardware store in Montana. His inventory costs him \$75,000. Prior to opening his hardware store, Bob worked as an investment banker earning \$175,000 per year. He pays his employees \$150,000 per year. Economists would say Bob's cost of running the hardware store is \$225,000 per year. True False

### Competitive Market

In a perfectly competitive market, individual firms can not impact the market price of their good or service. True False

### Ozone Depletion

Other than financial assistance, how might industrialized countries help developing countries to control ozone depletion?

### Total revenue exceeds peak

I know that when Total Revenue reaches its peak (TR=1), then the Marginal Revenue =0, but when Total Revenue exceeds its peak, what does the Marginal Revenue reach?

### Discount Retailer industry

How is it that WalMart was able to find success in the discount retailer industry? Competition seems to be so fierce among the giant retailers, after discounting and lower profit margins, how is profitability possible?

### Case Study-Control Data

I have a short case study to analyze. However, I don't know how to defend my answer properly. There is no right or wrong answer, but I need to have a valid argument to the answer. In general, a clear written explanation is enough, but if you want to use graphs, numerical examples, or anything else to strengthen your argument, th

### Research positive and negative externalities of airline industry

Find 2 sources to help you answer the following questions about the industry you chose: Research any negative or positive externalities the industry produces. 1) Does the transaction of a buyer and seller directly affect a third party? Is the effect a negative or positive externality? Please explain. Research whe

### Money Multiplier Ratios

1. Assuming individuals hold no currency, calculate the simple money multiplier using the following reserve ratios: 5%, 10%, 20%, 25%, 50% 2. What is the impact of these ratios on the level of new money that can be created given a \$100,000 cash deposit into the banking system?

### CBO's economic and budget projections

How does the state of the economy affect federal budget.How can macroeconomic variables inter-relate to each other.

### cutting staff savings

If I have to layoff 19 employees because the company is upside down -\$1878.00 after total cost. So, by cutting staff of 19 with a salary of \$100 per day, an eight hour day, how much will I save?

### Workers start at firm A when they are 18...

Workers start at firm A when they are 18. The VMP of each worker remains \$18 throughout their work life. Given the firm's concern that workers shirk, they start workers at \$10 and increase the pay by \$0.40 each year they are on the job. Assume that the firm does not have a pension plan and r=0 for all workers. (i) For wha

### Labor economics

2. Andre's wage-schooling locus can be described by the following table Years of Schooling Annual Earnings 11 22,000 12 30,000 13 35,000 14 38,000 15

### firm in an oligopolistic industry

A firm in an oligopolistic industry has the following demand and total cost equations P = 600 - 20Q TC = 700 + 160Q + 15Q squared Calculate: A. Quantity at which profit is maximized B. Maximum profit C. Quantity at which revenue is maximized D.Maximum revenue E. Maximum quantity at which profit will be at

### Achieving .99 Reliability

Assume you have a product with reliability of .90 at 1000 hours. Your customer wants a reliability of .99. Explain what you can do, if the best technology was used to produce the components of the system to achieve the .99 reliability?

### Reliability using normal distribution

Assume you tested svereral Firestone tires and recorded their failure times (as defined by an engineer).After doing a Chi-Square test ,you decided taht failures are normally distributed ,with mean failure of 50,000 miles and a standard deviation of 10,000 miles .Determine the following: a) reliability of the tires at 40,000 m