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Macroeconomics

What decision should the firm make using each of the given rules?

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

Ways Future Generations Benefit from Deficit Spending

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

CPI calculations

1. Between 1929 and 1933, GDP measured in current prices fell from $96 billion to $48 billion. Over the same period, the relevant price index fell from 100 to 75. a. What was the percentage decline in nominal GDP from 1929 to 1933? b. What was the percentage decline in real GDP from 1929 to1933? Show your work. 2. Compute

Inflationary Pressures

Testing procedures required by the US Food and Drug Administration raise the cost and price of drugs. Should we eliminate such requirements in order to ease inflationary pressures? How about the regulation of hot dog content?

Macroeconomic variables are studied.

What variables other than price appear to have the biggest impact on the demand for McDonaldâ??s products? How much influence does the company have over these variables?

Between October 2004 and 2005, real GDP in the United States

Between October 2004 and 2005, real GDP in the United States increased by 3.6 percent, while nonfarm payroll jobs increased by only 1.4 percent. How is it possible for output to increase without a proportional increase in the number of workers? What are the implications in our economy of more output being produced by less worker

Managerial Economics

Use the following data for a perfectly competitive firm and the profit-maximizing input-combination rule to identify how many workers the firm will employ to maximize profits. Number of Workers (L) MRPL MRCL 1 $200 $30 2 150

WHICH COMPONENT OF AD DECLINED THE MOST?

THE RECESSION OF 2001â?"WHICH COMPONENT OF AD DECLINED THE MOST? Use the interactive feature of the Bureau of Economic Analysis Web site, www.bea.gov, to access the National Income and Product Account Tables. Select Interactive Data Tables, which is listed under Publications. On that page, select National Income and Product Acc

Use the GDP data from 1929 to 2008 collected in the first part of this assessment (Assignment 4 Data Collection) to match the following GDP numbers with the corresponding year. (Points : 10) : 103.6 1 : 1981 : 86.1 2 : 1938 : 101.4 3 : 1983 : 3536.7 4 : 1940 : 3128.4 5 : 1929

Use the GDP data from 1929 to 2008 collected in the first part of this assessment (Assignment 4 Data Collection) to match the following GDP numbers with the corresponding year. (Points : 10) : 103.6 1 : 1981 : 86.1 2 : 1938 : 101.4 3 : 1983 : 3536.7 4 : 1940 : 3128.4 5

Calculate the range for beauty lotion

Beauty lotion is a skin-moisturizing product that contantains rich oils, blended especialy for overly dry or neglected skin. The product is sold in 5-once bottles by a wide range of retail outlets. In an on going review of product quality and consistency, the manufacturer of Beauty Lotion found a sample average product volume of

Engineering Economy

A married couple is planning to buy a new sport utility vehicle (SUV) 5 years from now. They expect the SUV to cost $32,000 at the time of purchase. (a) If they want to have half of the cost for a down payment, how much must they save each year (starting at the end of the current year) if they can earn 10% per year on their sav

HHI Index

Suppose there are 12 firms in an industry. The percentage of total sales is given in the following table: Firm Percentage of total sales 1 16 2 14 3 12 4 12 5 10 6 8 7 6 8 6 9 5 10 4 11 4 12 3 Calcula

Total Profit and Price Charges

Consolidated Salt Company sells table salt to both retail grocery chains and commercial users (e.g., bakeries, snack food makers, etc.). The demand function for each of these markets is: Retail grocery chains: P1 = 180 - 8Q1 Commercial users: P2 = 100 - 4Q2 where P1 and P2 are the prices charged and Q1 and Q2 are the quan

Effects of the appreciation of the Canadian dollar against the US dollars

Please advise if my answers are correct. I think I am weak in part d. Question In 2003 to 2004, the Canadian dollar appreciated against the US dollar. Explain the effects of this appreciation on a. Canadian importers of goods from the US. (2 marks) b. Canadian firms that sell commodities to US buyers. (2 marks)

Managerial Economics

Igh grade. The standard CDs are used primarily in computer drives and are designed for data storage rather than accurate sound reproduction. The company only recently began producing the higher quality, high grade model to enter the lucrative music recording market. Since the new product was introduced, profits have seen only a

Size of rebate that maximizes total profits

I have a website where I offer cash rebates for buying stuff. For instance, if someone purchases a pair of shoes, I give them a $10 cash rebate. For that particular sale I will receive a commission of say, $25, so my net revenue from that offer is $15. The goal is to offer a rebate that is large enough that lots of people are in

Total Cost

Suppose total benefits and total costs are given by B(Y) = 100Y - 8Y2 and C(Y) = 10Y2. What level of Y will yield the maximum net benefits? Show your work. a. 75/36 b. 75/18 c. 50/18 d. 100/36

Standard Costs and Balanced Scorecard

Dinkel Manufacturing Corporation accumulates the following data relative to jobs started and finished during the month of June 2008. Costs and Production Data Actual Standard Raw materials unit cost $2.25 $2.00 Raw materials units used 10,600 10,000 Direct labor payroll $122,400 $120,000 Direct labor hours worked

Marginal propensity

A firm purchases a new computer system for $1M. If the marginal propensity to consume is 0.8, the final change in national income will be a. $800,000 b. $1M c. $1.2M d. $4M e. $5M Which answer is correct, can you explain

Fed fund rates / history from 2001-2005

Using the website for the St Louis Federal Reserve Look at the Federal reserve rate monthly data from 2001 to 2005 What has happened to the interest rate from 2001 to 2005? Why has this occurred? Look at the consumer prices (personal consumption expenditures - less food and energy And gross domestic product ("1 decimal") fi

AD Schedule

True or false and explain. "The AD schedule slopes downward because real income rises as the price level declines and everybody buys more as their real income rises."

Two-part tariffs and underage drinkers

The Rusty Anchor Bar has 2 types of patrons: legal and underage drinkers. Even though it is illegal to allow entry to underage drinkers, there is no perfect way to identify underage drinkers since they often use fake identification cards. The penalty for serving underage drinkers is severe - the bar could lose its license. Ass

Price Individual Demands

Two consumers, Consumer 1 and Consumer 2, purchase the same product. They have the following demand curves: Q1 = 500 - 10 P and Q2 = 500 - 20 P. MC for the firm is $10. (a) Calculate the prices that should be charged to each customer if the seller is able to use first degree price discrimination. (b) Is this a good

Factors that Drive Fluctuations in Market Prices

If you were to pick the single most important factor that drives the fluctuation in the short term stock market prices, what would that factor be, and why do you think that it is the chief factor that drives short term fluctuations?

How do people judge whether prices are too low, too high or fair?

How do people judge whether prices are too low, too high or fair? As a consumer how do you determine perceived value? What factors do you consider when decided to purchase a product from one company versus another company? How do you determine perceived value when deciding to purchase a service from one company versus anothe

Opportunity cost (macroeconomics)

Atlantis is a small, isolated island in the South Atlantic. The inhabitants grow potatoes and catch fresh fish. The accompanying table shows the maximum annual output combinations of potatoes and fish that can be produced. Obviously, given their limited resources and available technology, as they use more of their resources

Firms in a Oligopolistic industry

Consider two strategically dependent firms in an oligopolistic industry: Firm A and Firm B. Firm A knows that if it offers extended warranties on its products but Firm B does not, it will earn $6 million in profits, and Firm B will earn $2 million. Likewise, Firm B knows that if it offers extended warranties but Firm A does not,