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# Microeconomics

### 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

### Applied Problem

Twenty First Century Electronics has discovered a theft problem at its warehouse and has decided to hire security guards. The firm wants to hire the optimal number of security guards. The following table shows how the number of security guards affects the number of radios stolen per week. Number of security guards Number

### examples of intermediate goods and final goods and services

Please address the questions below: 1. How is the total output of our economy measured? 2. Use the circular flow diagram to explain the co-relation between total output and total income. 3. Give examples of intermediate goods and final goods and services. 4. Explain in your own words the term transfer payment and g

### 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?

### Diminishing Returns are evaluated in the context of studying for tests.

When you study, how might you know that you are at a point of diminishing returns, or where more study will not benefit you like it did before? Can you identify any of the costs that would help you decide how much study is enough?

### On the island of Pago Pago there are 2 lakes and 20 anglers. Each angler can fish on either lake and keep the average catch on his particular lake. On Lake x, the total number of fish caught is given by: F^x = 10Lx - 1/2 L^2x, where Lx (l subcript x) is the number of people fishing on the lake. For Lake y, the relationship is: F^y = 5Ly A. Under this organization of society, what will be the total number of fish caught? B. The chief of Pago Pago, having once read an economics book, believes it is possible to raise the total number of fish caught by restricting the number of people allowed to fish on Lake x. What number should be allowed to fish on Lake x in order to maximize the total catch of fish? What is the number of fish caught in this situation? C. Being opposed to coercion, the chief decides to require a fishing license for Lake x. If the licensing procedure is to being about the optimal allocation of labor, what should the cost of a license be (in terms of fish)? D. Explain how this example sheds light on the connection between property rights and externalities.

On the island of Pago Pago there are 2 lakes and 20 anglers. Each angler can fish on either lake and keep the average catch on his particular lake. On Lake x, the total number of fish caught is given by: F^x = 10Lx - 1/2 L^2x, where Lx (l subcript x) is the number of people fishing on the lake. For Lake y, the relationshi

### 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.

### Finding the Average Total, Average Variable, and Marginal Cost

TC=50+16Q-2Q2+0.2Q3 TC= total cost and Q= quantity produced per period Plot this curve for quantities 1 to 10 Calculate the average total cost, average variable cost and marginal cost for these quantities and plot them on another graph

### 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.

### Cost functions are demonstrated

A firm has the cost function C = (3Wk + 5Wl) (q^2 + q) (a) Check that linear homogeneity in input prices is satisfied. (b) Suppose Wk = 2 and Wl = 1 . Compute, and roughly graph, the firmâ??s average and marginal cost functions. (c) What is the standard relationship between the marginal cost function and the aver

### Effect of Price Changes on Quantity Demanded

Using table (below), determine by how much the demand for Florida Indian River oranges would change as a result of a 10 percent increase in the price of Florida interior oranges, and vice versa. Table Type of Orange Fl Indian River Florida Interior California FL Indian River -3.07

### 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

### Calculating Unit Cost Growth Rate

Nicholas Nickelby, a quality control supervisor for Vinyl Windows, Inc., is concerned about an increase in distribution costs per unit from \$10 to \$13.80 over the last four years. Nickelby feels that setting up a new direct-sales distribution network at a cost of \$17.50 per unit may soon be desirable. A. Calculate the unit co

### 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?

### Actual Present Value for Lumpsum Option

If you did win \$12 million in the New York lotto and you will be paid over a 20-year period- \$600,000 a year- or you can get a lump sum payment up front. What is the actual present value of this \$12 million? Interest rate is 5%.

### Profit Estimation of Tax

Consider yourself a regulatory tax expert faced with the task of proposing a uniform standad of profit estimation. Given two options: Economic profit estimation and Accounting Profit Estimation. Which one would you establish as the standard for calculating profits? Why?

### Diminishing Marginal Returns

Describe in your own words the law of diminishing marginal returns.

### Pork barrel spending

Which of the following statements is the BEST example of pork-barrel spending? Congress recently passed a bill calling for an increase in taxes for all middle-income families. The Baldwin County Municipal Government recently raised \$120,000 in tax revenue for use in the local high schools. When congress recently pas

### Calculating Annual Worth

Calculate the annual worth (years 1 through 7) of the Merchant Trucking Company's cash flow with an interest rate of 10% per year. Year 0 1 2 3 4 5 6 7 -------------------------------------------------------------------------------------------------------

### Immigration

The availability of jobs at higher real wages motivate people to migrate to the U.S. other things being equal, what impact will a large influx of immigrants have on real wages? What impact will it have on real wages in the immigrant's home country?

### 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

### Price at profit max, TR and TC at profit max

Assume a monopolist with the following: a. Qd = 100 â?" 10p b. TC = 1 + 2Q Find the following: 1.Price at profit max 2.Quantity at profit max 3.TR at profit max 4.TC at profit max 5.Profit Please answer in Word and provide appropriate graphs if applicable. Please create the graphs in Word

### Short-Run

Use the cost table below to answer the following questions. (Note: You cannot match up price exactly with the appropriate item. Choose the one that comes most nearly.) Total Total Average Fixed Variable Total Total Marginal Quantity