Economics

Suppose a country\'s MPC is 0.8, and in this country, government seeks to boost

Suppose a country's MPC is 0.8, and in this country, government seeks to boost real GDP by either increasing government purchases by $50 billion or by reducing taxes by the same a…

Suppose a country’s currency is a gold coin. One day, speculators find a large g

Suppose a country’s currency is a gold coin. One day, speculators find a large gold mine which doubles the supply of gold coins in the economy. In the short run: A.)both output an…

Suppose a dairy farmer in Murfreesboro is concerned with developing a minimum co

Suppose a dairy farmer in Murfreesboro is concerned with developing a minimum cost per day feed-mix from two sources, alfalfa (X) and corn (Y), which meets (or exceeds) certain nu…

Suppose a demand curve for good x is given by Qx = 60 - 2Px + 0.5Py - 0 1M (For

Suppose a demand curve for good x is given by Qx = 60 - 2Px + 0.5Py - 0 1M (For those of you who don't like math, don't be afraid that this demand curve looks complicated because …

Suppose a factory can produce a shirt for the equivalent cost of 2 loaves of bre

Suppose a factory can produce a shirt for the equivalent cost of 2 loaves of bread, and a household can produce a shirt for the equivalent cost of 8 loaves of bread. The factory i…

Suppose a fall in stock prices makes people feel poorer. The decrease in wealth

Suppose a fall in stock prices makes people feel poorer. The decrease in wealth would induce people to desire increase consumption, shown as a movement to the right along a given …

Suppose a family earned a nominal income of $30,000 per year in 2005 when the CP

Suppose a family earned a nominal income of $30,000 per year in 2005 when the CPI was 150. By 2010, that family's nominal income increased to $60,000 per year, while the CPI incre…

Suppose a farmer could grow corn or wheat on his land. What would happen to the

Suppose a farmer could grow corn or wheat on his land. What would happen to the supply curve for corn if the market price of wheat doubled? shift to the left shift to the right no…

Suppose a farmer in Georgia begins to grow peaches. He uses $1,000,000 in saving

Suppose a farmer in Georgia begins to grow peaches. He uses $1,000,000 in savings to purchase land, he rents equipment for $60,000 a year, and he pays workers $120,000 in wages. I…

Suppose a farmer in Georgia begins to grow peaches. He uses? $1,000,000 in savin

Suppose a farmer in Georgia begins to grow peaches. He uses? $1,000,000 in savings to purchase? land, he rents equipment for ?$100 comma 000100,000 a? year, and he pays workers ?$…

Suppose a farmer is debating whether to buy fertilizer to put on his land. The n

Suppose a farmer is debating whether to buy fertilizer to put on his land. The net return to fertilizer will depend on whether there is a favorable rainfall. Suppose the payoff ma…

Suppose a firm expects that a $40 million expenditure on R&D in the current year

Suppose a firm expects that a $40 million expenditure on R&D in the current year will result in a new product that can be sold next year. Selling that product next year would …

Suppose a firm finds that the marginal product of capital is 60 and the marginal

Suppose a firm finds that the marginal product of capital is 60 and the marginal product of labor is 20. If the price of capital is $6 and the price of labor is $2.50, describe ho…

Suppose a firm has a monopoly on the sale of widgets and faces adownward-sloping

Suppose a firm has a monopoly on the sale of widgets and faces adownward-sloping demand curve. When selling the 100thwidget, the firm will always receive less marginal revenue on …

Suppose a firm has market power and faces a downward sloping demand curve for it

Suppose a firm has market power and faces a downward sloping demand curve for its product, and its marginal cost curve is upward sloping. If the firm reduces its price, then: cons…

Suppose a firm has the following costs: Output (units): 10 11 12 13 14 15 16 17

Suppose a firm has the following costs: Output (units): 10 11 12 13 14 15 16 17 18 19 Total Cost: $50 $52 $56 $62 $70 $80 $92 $106 $122 $140 (a) If the prevailing market price is …

Suppose a firm has the following demand equation: Q = 1,000 - 3,000P + 10A, wher

Suppose a firm has the following demand equation: Q = 1,000 - 3,000P + 10A, where Q = quantity demanded P = product price (in dollars) A = advertising expenditures (in dollars) as…

Suppose a firm has the following production function: Q(L,K) = (L*K)1/4 where L

Suppose a firm has the following production function: Q(L,K) = (L*K)1/4 where L is labor and K is capital. Suppose that W = 3 (price of one unit of labor) and R = 5 (price of one …

Suppose a firm has the following short-run demand and cost schedule for a partic

Suppose a firm has the following short-run demand and cost schedule for a particular product. Q = 200 - 5P TC = 400 + 4Q a.) At what price should this firm sell its product? b.) I…

Suppose a firm has two types of customers but cannot tell which type of buyer a

Suppose a firm has two types of customers but cannot tell which type of buyer a customer is before a purchase is made. One group of customers has an inverse demand of P = 100 - 10…

Suppose a firm hires a worker under a legally binding two-period contract. The c

Suppose a firm hires a worker under a legally binding two-period contract. The contract specifies that worker will be paid $1500 in period 0 and $4000 in period 1. The worker has …

Suppose a firm in monopolistic competition has the following demandschedule. Sup

Suppose a firm in monopolistic competition has the following demandschedule. Suppose the marginal cost is a constant $70. How muchwill the firm produce? Is this a long-or short-ru…

Suppose a firm is composed of 2 divisions - one that produces cheese and the oth

Suppose a firm is composed of 2 divisions - one that produces cheese and the other that produces crackers. The cheese division is run out of Milwaukee, while the cracke is run out…

Suppose a firm is considering two different activities, X and Y, which yield the

Suppose a firm is considering two different activities, X and Y, which yield the total benefits presented in the schedule below. The price of X is $40 per unit, and the price of Y…

Suppose a firm is hiring 20 workers at a wage rate of $60. The average product o

Suppose a firm is hiring 20 workers at a wage rate of $60. The average product of labor is 30, the last worker added 12 units of output, and total fixed cost is $3,600. Fill in Mu…

Suppose a firm is selling an identical product to different customers, and these

Suppose a firm is selling an identical product to different customers, and these customers possess different elasticity of demand. Given these circumstances, indicate whether the …

Suppose a firm is using labor and capital and obtaining the maximum possible out

Suppose a firm is using labor and capital and obtaining the maximum possible output for a given total cost. If the price of labor increases, all other things unchanged, then the f…

Suppose a firm practices price discrimination LOADING... to increase its profits

Suppose a firm practices price discrimination LOADING... to increase its profits. What potentially limits price discrimination? A firm's ability to practice price discrimination w…

Suppose a firm produces widgets on two assembly lines and operates with the foll

Suppose a firm produces widgets on two assembly lines and operates with the following Total Cost function: TC = 3x*2 + 6y*2 – xy Where x represents the number of widgets produced …

Suppose a firm sells to senior citizens and others at a single price of $3. At t

Suppose a firm sells to senior citizens and others at a single price of $3.  At this price it sells 10,000 units total (2,000 to seniors; 8,000 to others).  It estimates that at t…

Suppose a firm sells to senior citizens and others at a single price of $5. At t

Suppose a firm sells to senior citizens and others at a single price of $5. At this price it sells 10,000 units total (2,000 to seniors; 8,000 to others). It estimates that at the…

Suppose a firm uses 200 units of capital and 1,000 workers to produce 10,000 uni

Suppose a firm uses 200 units of capital and 1,000 workers to produce 10,000 units of output. When the firm employs 3,000 workers and uses 600 units of capital, output increases t…

Suppose a firm uses two good in the production process, x 1 and x 2 . The price

Suppose a firm uses two good in the production process, x1 and x2. The price for a unit of x1 costs the firm g1 and the price for a unit of x2 costs the firm g2. The firms product…

Suppose a firm\'s Total Cost Function is: TC = 4Q^2 + 12Q +30. Identify: 1.) Fix

Suppose a firm's Total Cost Function is: TC = 4Q^2 + 12Q +30. Identify: 1.) Fixed Cost 2.) Variable Cost 3.) Marginal Cost 4.) Average Fixed Cost 5.) Average Total Cost 6.) The qu…

Suppose a firm\'s marginal cost is MC = 80 + 2 Q and its marginal revenue is MR

Suppose a firm's marginal cost is MC = 80 + 2Q and its marginal revenue is MR = 200 – Q. Which of the following statements is TRUE? I. The profit-maximizing price is $180. II. If …

Suppose a firm\'s marginal product of capital and marginal product of labor sche

Suppose a firm's marginal product of capital and marginal product of labor schedules are as shown in the table below. The firm hires both capital and labor competitively for $5 an…

Suppose a firm’s production function is: f(E,K) = 40K0.25E0.75 The corresponding

Suppose a firm’s production function is: f(E,K) = 40K0.25E0.75 The corresponding marginal product functions are: MPK = 10K-0.75E0.75 and MPE = 30K0.25E-0.25 Suppose initially that…

Suppose a fiscal stimulus package that called for a large increase in government

Suppose a fiscal stimulus package that called for a large increase in government spending actually increases governments budget deficit dramatically a. When the government runs a …

Suppose a fitness center has the following schedule of fees and charges. Usage F

Suppose a fitness center has the following schedule of fees and charges. Usage Fee                           Pricing scheme Casual Visit                              $10 per visit…

Suppose a furniture manufacturer is producing in the short run (with its existin

Suppose a furniture manufacturer is producing in the short run (with its existing plant and equipment). The manufacturer has observed the following levels of production correspond…

Suppose a good is produced according to the following production function: f (E,

Suppose a good is produced according to the following production function: f (E, K) = E1/2K1/2             so that the marginal product of labor and capital are                   …

Suppose a government agency is planning to carry out an auction and invite bids

Suppose a government agency is planning to carry out an auction and invite bids for a new bridge to be built across a river. You are hired as a consultant in this process with a g…

Suppose a government has access to the following sources of funding currently as

Suppose a government has access to the following sources of funding currently as well as over the long run: Source Dollar Amount Taxes $1,000 User charges $100 Borrowed funds $250…

Suppose a government has no debt and a balanced budget. Suddenly it decides to s

Suppose a government has no debt and a balanced budget. Suddenly it decides to spend $10 billion while raising only $8 billion worth of taxes. a) What will be the government's def…

Suppose a government is established in a country where none previously existed.

Suppose a government is established in a country where none previously existed. The government spends 80, financed by borrowing, to provide public services. If autonomous consumpt…

Suppose a government is established in a country where none previously existed.

Suppose a government is established in a country where none previously existed. The government spends 80, financed by borrowing, to provide public services. If autonomous consumpt…

Suppose a government is established in a country where none previously existed.

Suppose a government is established in a country where none previously existed. The government spends 110, financed by borrowing, to provide public services. If autonomous consump…

Suppose a group is trying to decide between 3 alternatives: A, B, and C. Using s

Suppose a group is trying to decide between 3 alternatives: A, B, and C. Using some voting rule the group ranks the three alternatives and we can see that they prefer alternative …

Suppose a group of cattle ranchers each have $100 to spend. The farmers can eith

Suppose a group of cattle ranchers each have $100 to spend. The farmers can either purchase a steer for $100, and let it graze in a common grazing area, or they can buy a bond wit…

Suppose a group of investors pooled $150,000 and founded Second Republic Bank in

Suppose a group of investors pooled $150,000 and founded Second Republic Bank in San Antonio, TX. Second Republic Bank used $$15,000 of this to purchase shares in the Dallas Feder…