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Microeconomics

HHI Index

Determine whether the Justice Department would challenge a merger between two firms in an industry with 10 equalized firms, based on the Herfindhal index guidelines. (No other factor considered)

Plot this student's production possibilities curve (PPC)

Please help with the following questions. Does the PPC illustrate increasing or decreasing opportunity cost? What is the opportunity cost for this student for the additional amount of study time on economics required to mover her grade form 60 to 70? What is the opportunity cost for this student for the additional am

Merger discussion

15. Nationwide Bank has approached Hometown Bank with a proposal to merge. The following table lists the sales of the banks in the area. Use this information to calculate the four-firm concentration ratio and the Herfindahl-Hirschman index. Based on the FTC and DOJ Horizontal Merger Guidelines described in the text, do you thi

Solve for Optimal mix.

Brian is taking three courses this semester: economics, statistics, and finance. He has decided to spend 19 hours per week studying (in addition to attending all his classes) and his objective is to maximize his average grade, which means maximizing the total of his grades in the three courses. The table shows Brianâ??s estimat

One of the scarce resources that constrain our behavior is time. Each of us has only 24 hours in a day. How do you go about allocating your time in a given day among competing alternatives? How do you go about weighing the alternatives? Once you choose a most important use of time, why do you not spend all your time on it? Use the notion of opportunity cost in your answer.

One of the scarce resources that constrain our behavior is time. Each of us has only 24 hours in a day. How do you go about allocating your time in a given day among competing alternatives? How do you go about weighing the alternatives? Once you choose a most important use of time, why do you not spend all your time on it? Use t

The Willingness to Pay for Various Units of a Public Good

The table attached shows the willingness to pay for various units of a public good for the only two individuals in a society. The willingness to pay is the willingness to pay per unit of the public good. For example, person 1 is willing to pay $55 per unit of the public good for two units. To put it another way, if the price t

Land Value Increase Problems

Why might a profitable motel shut down in the long run if the land on which it is located becomes extremely valuable due to surrounding economic development? What kinds of costs are involved in making a decision to shut down?

Pay for performance questions are posed.

Answer should be related to a U.S. company 1. a. Set forth and explain in detail the concept of pay for performance. b. Do you believe that pay for performance is the most ethical and efficient payment system? Explain in detail why or why not.

Economic costs & diminishing returns

Give a brief summary of economic costs. In the short-run, why might a firm still operate even when there is a loss. Explain the law of diminishing returns in your own words. This idea can be applied to almost anything in economics. Think about your own utility from consumption. Give a personal example of diminishing utility.

Mapco Enterprises

The economic analysis division of Mapco Enterprises estimated the demand function for its line of weed trimmers as Qd = 18,000 + 0.4N - 350Pm + 90Ps where N= number of new homes completed in the primary market area Pm = price of Mapco trimmer Ps = price of its competitor's Surefire trimmer In 2006

Help needed

Suppose a business experiences a sudden increase in its fixed costs. For example, suppose property taxes increase dramatically. What impact, if any, will this have the firm's AFC (average fixed cost), AVC (average variable cost), ATC (average total cost) and MC (marginal cost) and therefore these cost curves? Why?

MBA Managerial Economics - Maximum Profit and Optimal Pricing

You are the manager of a firm that produces products X and Y at zero cost. You know that different types of consumers value your two products differently, but you are unable to identify these consumers individually at the time of the sale. In particular, you know there are three types of consumers (1,000 of each type) with the f

Own-price elasticity of demand

Suppose Qd = 10,000-2Px+3Py-4.5M, where Px = $100, Py = $50, and M = $2,000. What is the own-price elasticity of demand? A. -2.34 B. -0.78 C. -0.21 D. -1.21

Dicussion question.

Should the club cover explicit and implicit costs? Imagine that you are asked to consult with a drama club that puts on a play every year. The club asks you: How much should we charge for tickets if we want to cover our costs? You begin by listing the club's explicit costs and implicit costs and then make a recommendation whethe

Certainty equivalent coefficient

An individual is indifferent between a certain payment of $20 and a game that will pay $50 or nothing with equal probabilities. The individual has a certainty equivalent coefficient of what? 0.20 0.40 0.80 2.50

Walt Disney's Californian locale

When Walt Disney built Disneyland in Anaheim, California; he failed to realize the impact on the neighboring properties. When Walt Disney World in Orlando, Florida, was conceived, Disney did not want a repeat of Anaheim. Disney secretly began purchasing property in the Orlando area. Disney formed hundreds of fake companies to

Microeconomics

Suppose a monopolist sells its good to three people. Each person can only purchase one good. The first person is willing to pay $20 for the good, the second person is willing to pay $18, and the third is willing to pay $16. If these three people make up the entire market for this monopolist, the monopolist would face the demand

A risk-averse manager

A risk-averse manager is considering a project that will cost $100. There is a 10 percent chance the project will generate revenues of $100, an 80 percent chance it will yield revenues of $50, and a 10 percent chance it will yield revenues of $500. Should the manager adopt the project? Explain

Cost-volume-profit analysis

Manning Industries manufactures and sells three different models of wet-dry shop vacuum cleaners. Although the shop vacs vary in terms of quality and features, all are good sellers. Manning is currently operating at full capacity with limited machine time. Sales and production information relevant to each model follows.

Financial health of Walmart

If you could, How would you measure the overall financial health of Walmart? What are the good and/or the bad signs, if any, in your outlook?

General Motors (GM)

General Motors (GM) In 250-300 words, discuss the market structure in which General Motors operates and what strategies they used to maximize profit. What segment market should General Motors (GM) target in the U.S. based on today's economic status? If GM go into liquidation, should there be government intervention a

Economics

Need to compare my answers (45min) Thanks (I need this in 10 MINUTES) the text for 14 is Refer to Figure 7-1. When the price is P1, consumer surplus is a A. b A + B. c A + B + C. d A + B + D.

What is the Efficient Outcome?

A mill and fishery operate on a river. The fishery can operate at one of two locations - upstream or downstream. Pollution lowers the profits of the fishery: without pollution, profits are $300 upstream and $500 downstream. With pollution, profits are $200 upstream and $100 downstream. The mill earns $500 profit. Technology is