1. Oligopoly Exhibit 1 shows demand and cost conditions for a firm in an oligopoly market. Replicate the graph. Use the diagram to answer the following questions. a. If the firms in this industry were to compete, what would be the resulting market price and quantity? Use dashed lines as a hint. Label Price as P1 a
Question 1 Consider a small open economy with a fixed exchange rate system. Suppose there is a general expectation that the central bank will revalue the domestic currency in the future (i.e. it will reduce the fixed exchange rate defined as the amount of the domestic currency per unit of foreign currency). Explain the shor
You manage a U.S. based company that makes shoe laces that you sell in a highly competitive market (your shoe laces are considered a standardized commodity by your customers). Your marketing staff predicts that in the upcoming year overall industry supply will fall by at least 4% because some of your U.S. competitors cannot con
You suddenly realize that your demand estimates might have some uncertainty in them. How might you change the amount of surplus you give to the consumers because of this? When you do not know the right demand, you cannot set the right price. So, instead of setting the price first, how can you find out the right price when th
The demand for new motor homes in the United States is highly cyclical and sensitive to diesel fuel prices and interest rates. Given these characteristics, describe the effect of each of the following on the quantity demanded or the demand for new motor homes. Indicate whether the effect of each of the following is an upward o
What is meant by productivity, cost, and firm demand for one production factor. Can you please explain?
(Money Supply Versus Interest Rate Targets) Assume that the economy's real GDP is growing. What will happen to money demand over time? If the Fed leaves the money supply unchanged, what will happen to the interest rate over time? If the Fed changes the money supply to match the change in money demand, what will h
Suppose you are an aid to a government official deciding on some recently proposed excise tax on the welfare of her constituents. One way of measuring the impact on her constituents is to determine how that tax change affects the level of consumer surplus enjoyed by her citizens in her area. By using a formal analysis and estima
Does the Heckscher-Ohlin theory differ from Ricardian theory in explaining international trade patterns? The Heckscher-Ohlin theory demonstrates how trade affects the distribution of income within trading partners. Explain. How does the Leontief paradox challenge the overall applicability of the factor-endowment model?
See attached file for full problem description. --- 17-10 10. (External Costs) Use the data in the table to the right to answer the following questions. a. What is the external cost per unit of production? b. What level will be produced if there is no regulation of the externality?
(See attached files for full problem description) There are ten firms in a competitive industry, each with MC= 40-12q + q2 . Average cost is minimized at q=12 and Average Variable Cost is Minimized at q=9 for each firm. Demand for the product is given by P=160-Q, where Q represents industry output. A. Explain why the ind
Please see the attached file for full problem description with diagram. 2) Interpret this diagram as showing the market supply and demand curves for agricultural products. Suppose that supply increased from S0 to S1 and that demand is inelastic over the relevant range of prices. What areas in the figure would you use to illus
Suppose that a monopolist must choose between two points in its demand curve: it can sell 100 units for $3 or it can sell 140 for $2. Which of the following is true? a. The monopolist is facing elastic demand. b. The monopolist is facing unit elastic demand. c. The monopolist is facing inelastic demand. d. The monopolist
Industry structure is often measured by computing the Four-Firm Concentration Ratio. Suppose you have an industry with 20 firms and the CR is 30%. How would you describe this industry? Suppose the demand for the product rises and pushes up the price for the good. What long-run adjustments would you expect following this change i
Answer all three questions. 1. Discuss short and long run costs. For the short run discuss the relationship between cost theory and production theory and the concept of diminishing returns --- what is diminishing returns and how does it shape production and cost curves. Then, discuss the relationship between short run cost cu
Answer all three questions. 1. Discuss short and long run costs. For the short run discuss the relationship between cost theory and production theory and the concept of diminishing returns --- what is diminishing returns and how does it shape production and cost curves. Then, discuss the relationship between short run cost cu
Why do we have such extreme diversity in pay in the US---sport stars, actors, others making very high salaries while others make much less? What does economic theory tell us on this topic?
2 A ) Every demand curve must eventually hit the quantity axis because with limited incomes there is always a price so high that there is no demand for the good. B) If the elasticity of demand for long-distance calls is 1.5 and the price of long- distance calls falls by 20 percent as a result of increased competition from th
I am confused as to how to complete question 6. Not sure if i have the correct values, and if so, how to calculate the producer, consumer and social surplus. Also, lost on the per unit tax of 10 per unit and per unit subsidy of 50 per unit. Please find work and questions attached. --- 5) Supply P = 2Q + 170 Demand P
1. You are the Chief Economist of the Antitrust Division of the Department of Justice. There is a single producer of streaming video services that has a patent on the technology so that no one else can provide the service. But it only works on high speed access services. Assume that there is also a single provider of high spee
This solution shows graphically what happens to quantity sold when a price ceiling or a price floor is imposed. If price is fixed artificially above or below the natural equilibrium, will there be excess or not enough of a good?
Law of Demand and Supply What is the motivation behind each of the laws?
I need your HELP answering this questions: 1. I need a brief history of the beef (cattle) Industry in the US 2. I need an overview (how the beef Industry stands now and how the beef Industry is doing now) 3. I need a SWOTT (Strengths, Weaknesses, Opportunities, Threats and Trends) analysis of the beef Industry 4 Is
I need your HELP answering these questions: 1. Explain how the circular flow diagram illustrates the interaction of households, governments, and business? 2. Illustrate market equilibrium using supply and demand curves? 3. Differentiate between movement along and shift of the demand curve? 4.Explain the relationship
Suppose you have an industry with 20 firms and the CR is 30%. How would you describe this industry? Suppose the demand for the product rises and pushes up the price for the good. What long run adjustments would you expect following the change in demand? What does your adjustment process imply about the CR for the industry?
With rent controls being placed on apartments for low income individuals, could all of them be able to get such housing using the demand and supply theory? Ultimately, who would gain and lose in this situation? Why or why not? Could placing rent control be detrimental?
What would happen to the price of a pair of jeans if the following happened? Belts for jeans went up? Many styles of jeans are introduced? A new sewing machine is invented and will reduce production costs? The age of jean buyers increases and they do not like your style of jeans? Unemployment decreases?
Explain and discuss why the characteristics of the labor markets should result in the same wage rate for all jobs requiring the same level of abilities and skills? Why are earnings on the labor market are not always proportional to abilities? Demand for good workers = high pay demand for low workers = low pay Not proporti
Graphically illustrate short run supply. Also include on your graph the long-run aggregate supply curve. At what point must the short-run aggregate supply curve and the long-run aggregate supply curve intersect?
Why are there significant disparities in the cost of living throughout the US? Unfortunately, I am somewhat lost on this one. I cannot think of one definitive answer to this question. I would think the lack of industry would play an important part in regional differences. Poor education such as that in Louisianna would be a m