The question asked was suppose that the government imposes a price ceiling on toasters. In particular, suppose that it decrees that a toaster cannot sell for more than $14.00. Would the quantity supplied equal the quantity demanded? What sorts of devices may come into being to allocate the available supply of toasters to consu
(See attached file for full problem description) --- Question 1: Multi-Market Monopoly Consider a monopolist that produces output in a single plant at a constant marginal cost of $10 per unit. The monopolist sells in two different markets, rural and suburban. In the rural market, the price elasticity of demand for the
If my firm operates in a competitive market and competes with many other domestic and foreign firms. The domestic market demand for the product you produce is Qd = 500 - 1.5P. The domestic market supply curve is Qsd = 50 + 0.5P, and the market supply curve for the foreign firms in the market is Qsf = 250. - Determine th
Suppose your boss buys out every single pizza store in the US. Your cost-demand conditions are as follows: profit maximizing quantity - 60 pizzas; price - 20$ per piece; per unit cost (total) - $12 per piece, per unit cost (variable) - $8. a. Draw the graph, label all the curves and put all the numbers on the graph. Identif
Suppose that Congress enacts a lump-sum tax cut of $750 billion. The marginal propensity to consume is equal to 0.75. If Ricardian equivalence holds true, what is the effect on equilibrium real GDP? On saving?
Consider the attached graph. 1. At labor market equilibrium, _______ workers are hired at a wage rate of $_______ per hour, while total wages equal $_______. 2. At labor market equilibrium, how much is the payment to U.S. capital owners? 3. If Mexican migration to the United States results in the labor force increasin
Please see the attachment. I require very specific explanations for each part. If necessary, assumptions may be made but please make these explicit and make sure they are reasonable so that I can follow what you did. Also make the solutions as technical as possible. (See attached file for full problem description)
1. Determine the Market Structure Exhibit 3 depicts indicates the demand and cost conditions facing a firm. a. Label all the curves and axis on the graph. Is this firm a price-taker or a price-searcher? Explain exactly how you can tell the difference. b. Illustrate the firm's profit maximizing price and output in the
1. Monopolistic Competition Exhibit 2 shows the short-run demand and cost conditions for a firm under Monopolistic Competition. Replicate the graph. Label the curves and axis. a. What level of output will maximize the firm's profit? b. What price will the firm charge? c. How much revenue will the firms receive in th
1. BMW has MC=$20,000 and FC=$10billion. Demand for markets in Europe(e) and US(u) are Qe=4,000,000-100Pe and Qu=1,000,000-20Pu. Prices and Costs are in thousands. BMW can restrict US sales to authorized BMW dealers only. a. What should be the quantity and price in each market. b. What should be the total profit. c. If the
Assume that the position of a nation's aggregate demand curve has not been changed, but the long-run equilibrium price level has declined. Other things being equal, which of the following factors might account for this event? a. An increase in labor productivity. b. A decrease in the capital stock. c. A decrease in the q
Describe how competition from Gakk Pharmaceuticals would affect Aveta's profits from Taziclor. Include the following in your report: ? In qualitative terms, discuss how Gakk's potential entry into the market would affect the market demand curve for cures for the common cold and Aveta's (firm-specific) demand curve for Taziclo
When a worker announces that he plans to quit, say next month, the "threat" of being fired has no bite. The worker may find it in his interest to shirk. What can the manager do to overcome this problem? How does the game theory apply?
Utilize the attached graph to answer these questions: In the absence of trade, Canada would produce and consume how many televisions and refrigerators? Explain With specialization, how many televisions would Canada produce? Explain
(See attached file for full problem description) --- Exhibit 2 depicts the market conditions experienced by representative firms in three different price-taker markets. Replicate the diagrams below and answer the following questions. a. Which one of the conditions is true for a representative firm in the apple industry:
Producer Behavior and Costs 1. Town workers occasionally use their own automobiles on official business. The currentreimbursement rate is $.25 per mile. The employees' union complains to the town manager thatnumerous studies show that the cost of operating an automobile is really $.50 per mile, so that the current rate is t
Please see attached file for full problem description and chart. --- a. If there are no restrictions on pollution, what will be the amount of discharge? b. What will be the quantity supplied and the quantity demanded if the government restricts the amount of discharge to Q* but gives the permits away? c. Where is market equi
(See attached file for full problem description with diagram) --- 15. (Distribution of Costs and Benefits) Suppose that the government decides to guarantee an above-market price for a good by buying up any surplus at that above-market price. Using a conventional supply-demand diagram, illustrate the following gains and a
In the market for widgets the market demand curve is given by: P=50-0.05Q The market is competitive and each firm has total costs given by: C(q) = 640 + (0.1)q^2 (a) Find the equilibrium i. output of each firm ii. price iii. market quantity iv. Number of firms (throughout this question ignore the indivisibility
Whenever you have a problem with a price floor or a price ceiling, do not assume that it will always be effective. This solution will address how to determine if a price floor or ceiling is effective or not, what it looks like, it's purpose, and how to determine whether you need to use a price floor or a price ceiling in a give
If the total cost schedule for a perfectly competitive firm is and if market price is $60, how many units of putput will the firm produce? a. 0 units of output because the firm shuts down b. 2 units of output c. 3 units of output d. 4 units of output e. none of the above Output Total Cost 0 $10 1
If the Federal Reserve where ready to cut interest rates next week and officials indicated today that a quarter-point cut in federal funds remains firmly on the table, despite market expectations of a half-point cut. Please answer the following showing all of your work: 1) Before the Fed's action the equilibrium income and
Please give me your answers to these study questions. If you are not sure, can you give me a web site to go to? 1-1. In a monopoly market, a. one firm is the only supplier of a product for which there are no close substitutes. b. entry into the market is blocked. c. the firm can influence market pri
This is a 4 part question: A manufacturer is hiring 20 units of labor and 6 units of capital (bundleA). The price of labor is $10 and the price of capital is $2 and at A the marginal products of labor and capital are both equal to 20. 1.Beginning at A if the manufacturer increases labor by 1 unit and decreases capital by
1. Consider a price ceiling imposed on a monopoly that is set below the competitive price. Design a diagram showing the monopoly equilibrium in this case. Use your diagram to show that a price ceiling set this low will create a shortage. 2. What conditions must hold for a firm to be able to practice price discrimination? How
The Microsoft trial has been one of the biggest investigations of antitrust behavior since the turn of the century .Give your view points of 2 sides: the one that support the government side and the one that support's Microsoft's side.
If the workers at a firm successfully negotiate a wage increase, a. The demand curve for the product the firm produces shifts rightward. b. The demand curve for the product the firm produces shifts leftward. c. The supply curve for the product the firm produces shifts rightward. d. The supply curve for the product the f
Please provide a economic definition for: 1. Inflationary gap. 2. Marginal propentsity to save 3. shortage 4. ceteris paribus 5. nominal income 6. imtermediate foo 7. purchasing power 8. law of increasing oppotunity costs
When the economy is in equilibrium,________________. a. there are increases in inventory b. there are decreases in inventory c. total expenditures equal total production d. people want to buy more than will be produced Suppose the economy's short-run equilibrium point is to the left of the National Real GDP. Which of
Please see the attached file. Find a Walrasian equilibrium for each of the following utility function and individual endowments. Hint: In some cases it might be easiest to find the equilibrium in an Edgeworth-box - do not try to find the demand functions using first order conditions.