Assume a basket of products cost $5 million in the base year and the following is true in 2012: The same basket of products cost $8 million in 2012 GDP = $14.4 trillion money wages = $96,000/year the price of gas = $2.80/gallon the money supply = $1.6 trillion Now determine the following and explain: a. Price Index
Two companies, Company A and Company B, are deciding whether each should implement a new pricing strategy, which may or may not result in a price war. If both companies reduce (discount) their current prices, each company will end up with $175K in revenues for the month. If neither company discounts its current prices, eac
Create a chart that will show profit maximization for a perfectly competitive firm. Make up all the necessary data and formulas. Show how marginal revenue and marginal profit relate to profit maximization.
Use the data on U.S. real GDP below to compute real GDP per person for each year. Then use these numbers to compute the percentage increase in real GDP per person from 1987 to 2005. Year Real GDP (2000 prices) Population 1987 $6,435,000 million 243 million 2005 $11,092,000 million 296.6 million
Answer the following questions based on the following situation: Black Diamond Tennis & Golf Club offers golf and tennis memberships to the residents of Black Diamond, Ohio, in which there are two types of families: golf-oriented families and tennis-oriented families. There are 100 golf-oriented families and 100 tennis-orie
In 200-300 words: Why is collaboration a valuable tool to use in e-Learning? How you might use a wiki or a similar collaborative tool in your own instructional environment
Many cities regulate the taxi industry by licensing cabs. These licenses are often called medallions because they are issued in the form of a metal shield that must be affixed to the hood of the cab, where enforcement officials can easily see it. Furthermore, most cities regulate the fares that taxis can charge, while taxi medal
A plant expansion plan calls for the installation of additional production equipment to increase parts production. The equipment costs $200,000 and will generate annual revenues of $100,000. Operation of the equipment requires (annually) $20,000 in labor, $15,000 in material and $5,000 in power and utility costs. The equipment w
Graph the answer and shade or show if it has a feasible solution, is unbounded, has no solution, has multiple solutions or is redundant. A. Max profit = 6x + 4y Subject to: 3x + 2y <= 12 x >= 2 y <= 3 x, y >= 0 B. max profit = 10x + 5y Subject to:
The XYZ Company has estimated the expected cash flows [in thousands] for 1996 to be as follows: Probability Cash Flow 10 10 15 140 50 150 15 180 10 210 Calculate: a
I understand that Gross Domestic Product (GDP) is the broadest measure of output for an economy. But what exactly is GDP and what does it measure? Also, I am having trouble finding the limitations of GDP as a measure of well-being and welfare of a nation. Thank you.
Why is the USA's GDP so much higher than that of Mexico's? Would the same reasons apply when we compare the USA's GDP to Canada's GDP?
Please refer attached file for complete details. 1. The value of P (The present worth) is most nearly $ 367 $ 371 $ 377 $ 386 2. The value of P (the present worth) is most nearly: $80 $83 $85 $89 3. The value of Q is most nearly $193
Everyone would agree that economists are far less important to an economy than sanitation workers are, yet in market economies economists usually earn more than sanitation workers do. Why in market economies do relatively less valuable economists receive higher wages than absolutely vital sanitation workers?
Assume that the demand for corn is very inelastic. Would corn producers benefit if they all destroyed one-half of their corn before selling their corn to the market? How about Farmer Joe who destroys half of his corn? (Answer provided in less than 100 words.)
What is an opportunity cost? Why do economists consider opportunity costs? Provide an example of at least three possible opportunity costs of setting aside a mountain wilderness as a wilderness area and sanctuary for an endangered flowering plant.
Can you assist me with the following problem. Thank you. If we have a demand curve which can be described by Pd= 72.33-1.76Q, and we have a starting price of $50, what happens to TR when the price falls to $40? Find whether MR is positive or negative and fully explain why. Now, for the same demand curve, what happens to MR w
Assume Nail Mania advertises in the local newspaper. Each day it advertises costs $100. Over the past several months, Nail Mania has conducted market research and developed the following information Number of days advertised per week Number of customers per week 0
Assume the Widget Industry is composed of the following firms with associated market shares: Firm Market Share A 35 B 20 C 10 D 7 E
Let a firm's demand be given by: Q=100-P. Let the firm's marginal cost be $2 per unit of production. Solve for the firm's marginal revenue equation and optimal output/price combination. If the firm sets prices using Cost-Plus pricing what is the % markup over cost at the optimal price you found above?
Are credit cards money? If not, why are they so popular? What general impact do they have on an economy?
Consider a firm that is deciding whether to operate plants only in United States or also in either Mexico or Canada or both. Congress is currently discussing an overseas investment in new capital (OINC) tax credit for U.S. firms that operate plants outside the country. If congress passes OINC in 2011, management expects to do we
The treasurer of a U.S. firm noted that although short run deposits in Swiss bank accounts had earned the firm only a 3% annualized return when measured in Swiss francs, in dollars the firm had realized a 12% rate of return. Explain as precisely as possible how this was possible.
Suppose a Japanese firm buys a 1 year treasury bill with a face value of $10,000 today for $9400. If the value of the dollar declined from 90 to 80 yen during the year, what rate of return does the Japanese firm earn on its investment?
i) Find the optimal values of Ct, Ct+1, and St. ii) Is St positive or negative? Why? iii) Does the income or substitution effect dominate when the interest rate increases? Please see attachment file.
Please help answer the following questions. In what ways do future generations benefit from this generation's deficit spending? Cite three examples. If deficit spending "crowds out" some private investment, could future generations be worse off? If external financing eliminates crowding out, are future generations thereby
What happens to aggregate demand when transfer payments and the taxes to pay them both rise by the same amount? Will consumers always spend the same percentage of any tax cut? Why might they spend more or less the usual?
Parameters Strike price = $120; Expiration time = 1 year; Annual interest rate = 0.05; Stock volatility = 0.35. For the initial stock price, S0 = 100.45 Requirements Find the price of the call option by the Black-Scholes formula rounded to the nearest cent.
You can either spend spring break working at home in Alabama for $200 a day for five days, or you can spend the week in Costa Rica where travel expenses will total $700 (food, hotel, and a plane ticket.) What is the opportunity cost of the trip to Costa Rica? Explain how you determined your answer.
Sandy James thinks housing prices stabilized past months. To convince boss, intends compare current prices year prices. She collected 12 housing prices adds: 125,900, 253,000, 146,950, 121,450, 135,450, 175,000, 200,000, 210,950, 166,700, 185,000, 191,950. She then calculates the the mean and standard deviation of the prices she