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Microeconomics

Difference between market and government

In economics, the main difference between market and government stems from differences in: the majority and the minority competition and cooperation prevailing property rights

Expected Monetary Value: Leasing Versus Drilling

Please help with the following problem. One day a representative of a natural gas company comes to your home and expresses interest in obtaining the mineral rights (including natural gas) to your 1,000-acre homestead. They offer you a flat fee of $10,000 plus and additional $50,000 if they discover gas. You have the option

Microeconomics

Suppose you are a college admissions director and every year you receive 5,000 applications for admission to your school while your school only has 1,000 slots open. Your school is prestigious and has a reputation for producing some of the best and brightest college graduates on the national market. ASSUME that there is NO possi

Determine Optimal price & Marginal revenue functions

The company has the choice of selling tickets to its concerts or of selling CDs. Let P1 and Q1 be the price and quantity of concert tickets. Similarly, let P2 and Q2 be the number of CDs. The demand for Concerts is P1=100-12Q1+P2 and the demand for CDs is P2 = 50-3Q2+0.5P1. The marginal cost of selling a concert ticket is 0 and

Competitive Market vs. Monopolisitc Pricing

A FIRM IN A COMPETITIVE MARKET MODEL TENDS TO MAKE ZERO ECONOMIC PROFITS WHEN CHARGING A PROFIT MAXIMIZING PRICE AND A MONOPOLIST HAS NO LIMIT TO THE AMOUNT OF PROFITS THAT CAN BE EARNED WHEN THEY CHARGE THE PROFIT MAXIMIZING PRICE. WHY IS THAT?

Marginal & Average Cost Curve

A) If the government imposes a $1 per-unit tax, how do the marginal, average total, and average variable costs change? What if instead the government imposes a $100 per-firm tax? (ASSUME NO CHANGE IN THE AMOUNT OF SALES.) B) Why are short-run marginal cost curves expected to slope upward? C) If you know that average cost

Price Discrimination

We all know that industries price discriminate all the time. The airline industry does it everyday. For instance, two individuals seeking an economy-class seat on an airplane may pay different prices for the same class seat. QUESTION: Economically speaking, why is someone who pays more for their coach-class (economy-clas

Profit maximization

Canada Times Monthly is considering two ways of selling monthly print publication. One is to offer it on newstands at given price per issue. The second is to offer it as package of 12 issues for one annual subscription price. Research shows that the publication has 100,000 potential customers who are likely to value six of the t

Scenario assessment and regulation unregulated impact to economic model

Consider a situation where a city is considering services from one cable provider in a given area. Given the demand and total cost functions of P = 28 - 0.0008Q TC = 120,000 + 0.0006Q2 Where Q is number of cable subscribers and P price in dollars of monthly cable service. 1. How many cable subscriber

Wage or Salary Guidelines

Does the US Army have wage and salary increase guidelines? If so, explain the guidelines, and indicate how closely they are followed. If your organization does not have wage and salary increases guidelines, set forth and explain your own guidelines that could aid your organization's management.

Suppose that an industry in your nation was

Suppose that an industry in your nation was "hard hit" by imported goods, causing sales to drop and many people to loose their jobs. Should the government take any action? If actions should be taken, what should be done?

Indifference Curves

Im trying to do a problem where I am being asked to show how a consumers indifference curves for 2 goods are affected by the realization that one of the goods is causing him harm.

Derive total revenue, average revenue, plot graph

Given the following total-revenue function: TR = 9Q - Q² (a) Derive the total-revenue, average-revenue, and marginal-revenue schedules from Q = 0 to Q = 6 by 1s (b) On the same set of axes, plot the total-revenue, the average-revenue, and the marginal-revenue schedules of part (a) (c) With reference to your figu

Externality Charges

A club charged its customers an upfront fee to be able to drink an unlimited amount of alcohol. Since excessive drinking was seen as a problem the club started charging per drink. What are two other solutions besides a per drink fee to solve the problem of excessive drinking?

Minimum fee

Question: What contingency fee (percent of winnings) is the minimum amount that would induce the plaintiff's lawyer to choose "above average effort" over "average effort"? Given info - attached.

Standard deviation

SALES ($000) Probabilities 240 0.15 280 0.2 320 0.3 360 0.2 400 0.15 A. Calculate the Expected Revenue B. Calcul

Multiple Choice Economics

The constant or intercept term in a statistical demand study represents the quantity demanded when all independent variables are equal to: a. 1.0 b. their minimum values c. their average values d. 0.0 e. none of the above

Multiple Choice Economics

Marginal revenue (MR) is ____________ when total revenue is maximized. a. greater than one b. equal to one c. less than zero d. equal to zero e. equal to minus one

How much tax of each type do you pay if you earn $20,000 a year?

TABLE 3 ON TAXABLE INCOME......... THE TAX RATE IS........ UP TO $27,050 15.0% FROM $27,050 TO 65,550 27.5 FROM $65,550 TO 136,750 30.5 FROM $136,750 TO 297,350 35.5 OVER $297,350 39.1 Suppose you are a typical person in the U.S. economy. You pay 4 percent of your income in state income tax and 15.3 percent of your l

Competition quote

Is about Competition In the Woody Allen film Radio Days, a character who has never been successful in business decides to start a career engraving gold jewelry. He argues that this should be especially lucrative, because the engraver gets to keep the gold dust from other people's jewelry. Comment.

Identify which are statements of science

Identify which of the following are statements of science: that is, statements involving both language and fact. a. My mother is a beautiful woman b. 10 + 10 = 100 c. In the northern hemisphere, daylight lasts kinger in summer than in winter d. The force exerted by a moving body is directly related to its acceleration e. 12

price-cost markup

A. What price-cost markup is implied by a firm' elasticity of demand equal to -3.0? B. A "loss leader" is often defined as a product which is sold below incremental cost in order to build traffic to a store (whether physical or online). How would you reconcile the use of loss leaders with the markup rule you used in p

Dynamic Pricing Explanation

Select a company that uses (or has used) dynamic pricing. Briefly explain how the company uses dynamic pricing. What are the benefits and drawbacks of dynamic pricing for a particular company?

Squaring the market share of firms

For example: a market jwith two firms, one with a 60% market share and a second with a 40% share. The HHI (Herfindahl-Hirschman Index) for the market is 5,200, computed by adding the square of 60 (3,600) to the square of 40 (1,600) My question? I have forgotten how to do square root! How did they come to the square of 60 and