Suppose you have hired a new worker, unfortunately you do not know if the worker is a shirker or a hard worker. Suppose working hard raises the probability of making a sale from 40% to 80% (thus raises the probability of making a commission C by the same percentage). If the cost of working harder is $150,what commission C should
Suppose a firm in an oligopolistic industry faces the following demand curve: P = 4,800 - 0.4 Q for Q < 3,000 P = 20,000 - 2 Q for Q > 3,000 Suppose further its Cost function is as follows: TC = 1,000 + 100Q + 0.5 Q2 a. What price do you suppose they will charge in the short run? b. What do you suppose will happen in the l
Think about a product that you have purchased recently (e.g. soda, diapers, takeout meals, milk, shoes, manicure/pedicure, video game, etc.). Explain how the law of demand affected your purchase. Give specific examples of how the determinants of demand and supply affect this product (T-I-P-E-N and P-R-E-S-T). What happens to the
Josephine makes $100 a day as a flower shop attendant. She takes off two days of work without pay to travel to another city to attend her sister's wedding. The cost of transportation for the trip is $180 round trip. The cost of her hotel stay is $99 per night and she stays for 2 nights. What is the opportunity cost of Josephine'
Use the table below to answer the following questions: Table Output Total Cost 0 $10 1 $20 2 $28 3 $38 4 $53 5 $73 6 $99 a. What are variable costs of producing 5 units? b. What is average total cost of producing 3 units? c. What is average fixed cost of producing 4 units? d. What is the marginal cost
Please help with the following problem: How would you propose a series of taxes or other revenue measures to address your state's financial crisis? Provide reasoning for your approach.
Provide an analysis of the economic/political causes of World War I. The response is 1000 words and includes references cited. It is a study guide that will help students to further research the topic.
The Production Function for Wilson Company Economists at the Wilson Company are interested in developing a production function for fertilizer plants. They collected data on 15 different plants that produce fertilizer (see the following page). Questions 1. Estimate the Cobb-Douglas production function Q= αL^β 1K_2^β, wh
I need a Financial Analysis on GE Oil&Gas. Identify internal strengths and weaknesses. For example, does GE have good or bad cash flow, liquidity, and debt position? How does that compare with their competitors? What capital & cash flow would be required for my strategy?
COST STRCTURE and PRICING: Sting Ray PoolVac, Inc. manufactures and sells a single product called the "Sting Ray," which is a patent-protected automatic cleaning device for swimming pools. PoolVac's Sting Ray faces its closest competitor, Howard Industries, also selling a competing pool cleaner. Using the last 26 quarters of p
Question: Assume that a firm is considering building a factory that will cost $5 million. It believes that it can get a profit from this factory of $600,000 per year for many years. The interest rate at which the firm can borrow money is 15 percent. After evaluating whether it should build the factory, the firm decides that it s
From the following data, calculate the Retained Earnings balance as of December 31, 2013: Retained earnings, December 31, 2014 ............................................................................... $ 245,200 Net decrease in total assets during 2014 ....................................................................
Select a company that uses or has used dynamic pricing, and respond to the following questions: 1. What is the definition of dynamic pricing? 2. How does the company you have chosen use dynamic pricing? 3. What are the benefits and drawbacks of dynamic pricing for that particular company? 4. Summarize your find
A state legislature has appropriated $15 million to purchase and prepare the property for several new state parks. Alternatives have been suggested and forecasts for acquisition, preparation and annual operating costs have been estimated and listed below for each alternative. Also listed are the forecasted annual benefits to the
Is it ethical for a government to act in ways that socialize financial risks or losses? Is it ethical to do so while privatizing gain/profits? Or to do so in ways that favor wealthier citizens while imposing risk on less wealthy taxpayers (or vice versa)? Or that create moral hazards? Why or why not? Are these social goals that
Scenario The board liked the analysis you did on valuation and agreed to proceed with the expansion plan. Your CFO, investment bankers, and consultants have all been working on the cost and benefits of various expansion options. They have agreed on an option that will see simultaneous expansion into five domestic markets (Chi
Solutions are provided for questions given below. See the attached file. Using benefit-cost ratio analysis, determine which one of the three mutually exclusive alternatives should be selected. Each alternative has a 6-year useful life. Assume a 10% MARR. A
Imagine you are conducting a cost-benefit analysis. How do you plan to use this when making decisions about public expenditures? Is it necessary in the decision-making process? Explain why or why not.
What types of decisions would need to be made before the investment is made, and what are the main kinds of information/data needed in order to evaluate a capital investment project?
Suppose a firm faces the total benefit function: B(Q) = 18Q - Q^2 and the total cost function: C(Q) = 2 - 2Q +Q^2 a. What quantity should the firm select? b. What is the amount of total benefits, total costs and total net benefits at the selected quantity? c. If the first term in the cost equation changed from 2 to 5
Jet Blue Airlines has determined that the price elasticity of demand for two customer segments (Coach and Business Class) is -1.35 and -2.50. Based on their expectations of profitability, Jet Blue realizes the price of a Coach seat should be $175 (one way). How much should Jet Blue charge for a Business Class ticket?
1.) Rational Choice theorists argue that would-be criminals make the decision to commit crimes based on a cost-benefit analysis. Do you agree with this school of thought? Why? 2.) Assuming that you agree with the thinking of rational theorists, what cost-benefit factors would an individual contemplating the following crimes c
During the last few days the Company ABC has been running into problems with its computer system. The last run of the production cost schedule resulted in the incomplete listing shown below. From your knowledge of cost theory, fill in the blanks. Q TC TFC TVC ATC AFC AVC MC 0 40 _____
Marginal benefits and marginal costs A. Capture the way total benefits and total costs change as the amount of an activity changes just a little bit B. Are constant, regardless of the amount of an activity that is pursued C. Tend to increase as a decision maker does more of an activity D. Tend to increase as a decision ma
A city has learned that by buying garbage trucks, labor costs for garbage removal would be reduced. You, the analyst, have also collected the following information: Cost of the trucks today is $400,000 Annual savings in this year's constant dollars is $90,000 Trucks will last for four years, then will be sold for $100,000
The following is a labor supply function: Wage per hour Quantity of Nurse Supplied $2 1 4 2 6 3 8 4 10 5 12 6 Nurses are used by the clinic pt provide clinic visits. Each visit brings in $2 in revenue for the clinic. The relationship between nursing units and clinic visits is as follows: Qua
The following is a cost function for clinic visits in a small inner city clinic: Quantity of visits Total Cost per Week 0 $10 1 $15 2 $25 3 $45 4 $75 5 $115 6 $165 a. Determine the marginal cost for each level of output. b. If the price per visit is given to be $25
Sweetgrass Radiology Labs has a fixed amount of radiology equipment. The laboratory can hire any number of radiology technicians per hour to produce radiographs, which are displayed on a screen. The relationship between the number of technicians hired per hour and the number of radiographs produced per hour is shown in the fol
A program for patrolling a U.S region for illicit activities using aircraft is being assessed. An associated estimate of the total economic benefits of the interdiction vs. the number of patrol aircraft is shown below. Apply the first fundamental proposition of marginal reasoning to determine the optimal number of patrol aircr
I have been asked to address a professional meeting and explain microeconomics, macroeconomics and their differences. I need to out a text speech answering the following questions: â?¢What are the main differences between microeconomics and macroeconomics? Provide an example of a microeconomic and macroeconomic phenomenon. â?¢Please give an example of a microeconomic decision that youâ??ve made at work or home? What factors contributed to making that decision? â?¢Please give an example of how a macroeconomic phenomenon has impacted a personal or business decision in the past? In the end, what was the result of such a decision?
I have been asked to address a professional meeting and explain microeconomics, macroeconomics and their differences. I need to out a text speech answering the following questions: â?¢What are the main differences between microeconomics and macroeconomics? Provide an example of a microeconomic and macroeconomic phenomenon.