Economics

Suppose a handbill publisher can buy a new duplicating machine for $1000 and the

Suppose a handbill publisher can buy a new duplicating machine for $1000 and the duplicator has a 1-year life. The machine is expected to contribute $1090 to the year's net revenu…

Suppose a health clinic is providing health services to a rural community. The m

Suppose a health clinic is providing health services to a rural community. The manager of the clinic knows that there are customers who have a more substantial ability to pay for …

Suppose a hospital has 500 beds. It faces a demand curve x= 1200-2p, where p is

Suppose a hospital has 500 beds. It faces a demand curve x= 1200-2p, where p is the price of a bed day and x is the number of patient days of care demand. The fixed cost of adding…

Suppose a hypothetical economy is amenity in a recessionary gap of $64 billion.

Suppose a hypothetical economy is amenity in a recessionary gap of $64 billion. Four economists agree that expansionary fiscal policy can increase total spending and move the econ…

Suppose a jar of De Lux popcorn that is ultimately sold to a customer at Friendl

Suppose a jar of De Lux popcorn that is ultimately sold to a customer at Friendly Groceries is produced by the following production process: Name of Company; Revenues; Cost of Pur…

Suppose a lake is publicly owned, i.e. a common property resource, with free fis

Suppose a lake is publicly owned, i.e. a common property resource, with free fishing for all. The number of fish caught varies with the number of people fishing as follows:       …

Suppose a large corporation produces airplanes in a perfectly competitive indust

Suppose a large corporation produces airplanes in a perfectly competitive industry. The data in the following table give information about the cost of producing a particular type …

Suppose a large corporation produces airplanes in a perfectly competitive indust

Suppose a large corporation produces airplanes in a perfectly competitive industry. The data in the following table give information about the cost of producing a particular type …

Suppose a law is passed that requires insurance companies to cover any pre-exist

Suppose a law is passed that requires insurance companies to cover any pre-existing conditions that a patient has. a) how will the expected losses for the insurance company change…

Suppose a lazy monopolist\'s fixed costs are higher than the fixed costs of an e

Suppose a lazy monopolist's fixed costs are higher than the fixed costs of an efficient monopolist. In all other respects the monopolists are the same. Which of the following stat…

Suppose a local food truck owner incurs a total cost of $200 per month even if h

Suppose a local food truck owner incurs a total cost of $200 per month even if he makes and sells no food, but that his total cost rises to $202 if he makes and sells one hamburge…

Suppose a local food truck participates popular weekly food truck rallies at the

Suppose a local food truck participates popular weekly food truck rallies at the park. A. The food tuck was charging $5.00/taco and selling 1000 tacos per week. When it raised the…

Suppose a local golf club uses a cost-plus approach to charge members to play go

Suppose a local golf club uses a cost-plus approach to charge members to play golf. In particular, the club estimates that it will cost $273,000 to provide 16,000 rounds of golf. …

Suppose a local hardware store has explicit costs of $1 million per year and imp

Suppose a local hardware store has explicit costs of $1 million per year and implicit costs of $45,000 per year. If the store earned an economic profit of $35,000 last year, this …

Suppose a major hurricane devastates a large region of the US At the same time,

Suppose a major hurricane devastates a large region of the US At the same time, there are major Increases in criminal activity that diminish income and large levels of bank fraud …

Suppose a market exhibits the following forces: Demand: P = 1500 – 0.5Q Supply:

Suppose a market exhibits the following forces: Demand: P = 1500 – 0.5Q Supply: P = 150 + 0.25Q A tax of $30 per unit is proposed on the market to raise government revenue. A.    …

Suppose a market has two firms, each of which has 2 strategies—high price or low

Suppose a market has two firms, each of which has 2 strategies—high price or low price. If      they both collude to keep price high, they can each earn $900. If they both compete…

Suppose a market is initially closed to trade. The market has 2 domestic pro- du

Suppose a market is initially closed to trade. The market has 2 domestic pro- ducers: Randall who has a cost function C(gi)- + 5 and Lladnar who has a C(g) = g 2ge+ 10. The market…

Suppose a market is initially perfectly competitive with many firms selling an i

Suppose a market is initially perfectly competitive with many firms selling an identical product. Over time, however, suppose the merging of firms results in the market being serv…

Suppose a market is initially perfectly competitive with manyfirms selling an id

Suppose a market is initially perfectly competitive with manyfirms selling an identical product. Over time, however,suppose the merging of firms results in the market being served…

Suppose a market’s demand and supply curves take on the following characteristic

Suppose a market’s demand and supply curves take on the following characteristics: QD = 100 – 2.5(P) + 0.95(Y – T) QS = 2(P) where: QD quantity demanded QS quantity supplied P pri…

Suppose a market’s demand and supply curves take on the following characteristic

Suppose a market’s demand and supply curves take on the following characteristics: QD = 100 – 2.9(P) + 0.93(Y – T) QS = 2(P) where: QD quantity demanded QS quantity supplied P pri…

Suppose a monopolist faces consumer demand given by P = 700-2Q with a constant m

Suppose a monopolist faces consumer demand given by P = 700-2Q with a constant marginal cost of $20 per unit (where marginal cost equals average total cost. assume the firm has no…

Suppose a monopolist faces consumer demand given by P-400-TQ with a constant mar

Suppose a monopolist faces consumer demand given by P-400-TQ with a constant marginal cost of $100 per unit (where marginal cost equals average total cost. assume the firm has no …

Suppose a monopolist faces the demand curve described in the table below. The mo

Suppose a monopolist faces the demand curve described in the table below. The monopolist cannot price discriminate and must charge the same price for each unit sold. Marginal reve…

Suppose a monopolist faces the following demand curve: P = 280 - 6Q. The long ru

Suppose a monopolist faces the following demand curve: P = 280 - 6Q. The long run marginal cost of production is constant and equal to $52, and there are no fixed costs. A) What i…

Suppose a monopolist faces the following demand curve: P = 88 – 3Q. The long run

Suppose a monopolist faces the following demand curve: P = 88 – 3Q. The long run marginal cost of production is constant and equal to $4, and there are no fixed costs. A) What is …

Suppose a monopolist faces the following demand curve: P =70-2Q. The long run ma

Suppose a monopolist faces the following demand curve: P =70-2Q. The long run marginal cost of production is constant and equal to $22: and there are no fixed costs. What is the m…

Suppose a monopolist faces the following demand curve: p=250-2q Marginal cost of

Suppose a monopolist faces the following demand curve: p=250-2q Marginal cost of production is constant and is $10, and there are no fixed costs. What is the profit maximizing lev…

Suppose a monopolist has a constant marginal cost of $20 per unit, and a fixed c

Suppose a monopolist has a constant marginal cost of $20 per unit, and a fixed cost of $100. The demand curve for the product of the monopolist is given by P=100-Q, and its corres…

Suppose a monopolist has a production function given by Q = L 1/2 K 1/2 . Theref

Suppose a monopolist has a production function given by Q = L1/2K1/2. Therefore,MPL= K^1/2 /2L^1/2 and MPk= L^1/2/2K^ 1/2. The monopolist can purchase labor, L at a price w = 16, …

Suppose a monopolist has two segmented markets, domestic (1) and foreign (2). Th

Suppose a monopolist has two segmented markets, domestic (1) and foreign (2). The demand functions for both markets and the total cost function are as follows: P1 = 100 - Q1 P2 = …

Suppose a monopolist has two segmented markets, domestic (1) and foreign (2). Th

Suppose a monopolist has two segmented markets, domestic (1) and foreign (2). The demand functions for both markets and the total cost function are as follows: Find the output the…

Suppose a monopolist practices price discrimination in selling his product, char

Suppose a monopolist practices price discrimination in selling his product, charging different prices in two separate markets. In the market A the demand function is PA = 100-qA a…

Suppose a monopoly faces the inverse market demand p = 100 – 2Q such that MR = 1

Suppose a monopoly faces the inverse market demand p = 100 – 2Q such that MR = 100 – 4Q. The monopoly has a constant marginal cost of $12 (variable cost = 12Q) and a fixed cost of…

Suppose a monopoly provides both Cable TV and broadband access in a city. The fi

Suppose a monopoly provides both Cable TV and broadband access in a city. The fixed costs are Si million per day. The number of households (measured in millions) demanding cable i…

Suppose a monopoly provides both Cable TV and broadband access in a city. The Öx

Suppose a monopoly provides both Cable TV and broadband access in a city. The Öxed costs are $1 million per day. The number of households (measured in millions) demanding cable is…

Suppose a monopoly seller of mineral water is able to segment its market into th

Suppose a monopoly seller of mineral water is able to segment its market into three consumer groups: 1, 2, and 3. The (inverse) demand for mineral water on the part of each group …

Suppose a monopoly sells its product in two markets and resale between two marke

Suppose a monopoly sells its product in two markets and resale between two markets is impossible. The demand curves in the two markets are: Pi = 70 - Q1. P2 = 130 - 2Q2 The monopo…

Suppose a monopoly supplier of some good faces an inverse demand of P = 5250 20Q

Suppose a monopoly supplier of some good faces an inverse demand of P = 5250 20Q and a constant marginal cost of 170. (A) If the firm charges one price to all of its customers, wh…

Suppose a natural gas distribution company has capital investments of $8 million

Suppose a natural gas distribution company has capital investments of $8 million and a capital cost r of 10%. The firm’s operating, billing, and maintenance costs are $200,000. Th…

Suppose a natural monopolist has fixed costs of $24 and a constant margin of $2.

Suppose a natural monopolist has fixed costs of $24 and a constant margin of $2. The demand for the product is as follows: Price: $ 10, 9, 8 7, 6, 5, 4, 3, 2, 1 Quantity demanded …

Suppose a negative aggregate demand shock causes short-run output to drop to -1%

Suppose a negative aggregate demand shock causes short-run output to drop to -1%. To stimulate investment and bring the economy back to potential output the interest rate decrease…

Suppose a new law requires every college professor in your city to wear a specia

Suppose a new law requires every college professor in your city to wear a special uniform while teaching. These uniforms must be rented from the mayor’s brother at a cost of $1 pe…

Suppose a new spa is going to open on SFU Burnaby campus. The owner does not kno

Suppose a new spa is going to open on SFU Burnaby campus. The owner does not know much about economics and therefore hires you as a consultant. Your job is to write a report that …

Suppose a pay-as-you-go Social Security system and that there are 500 million wo

Suppose a pay-as-you-go Social Security system and that there are 500 million workers and 400 million retirees. Also suppose that the average annual earnings of a worker is $100,0…

Suppose a perfect competitive firm can increase its profits by increasing its ou

Suppose a perfect competitive firm can increase its profits by increasing its output. Then it must be true the firm's: marginal cost exceeds its marginal revenue. price exceeds it…

Suppose a perfectly competitive firm faces the following marginal benefit and ma

Suppose a perfectly competitive firm faces the following marginal benefit and marginal costs of providing safety to its workers. Marginal Benefit of Safety Amount of Safety Margin…

Suppose a perfectly competitive firm faces the following situation: P = $6, outp

Suppose a perfectly competitive firm faces the following situation: P = $6, output = 2,000, ATC = $7, MC = $6, and AVC = $6.50. Which statement is an accurate description of the f…

Suppose a perfectly competitive firm faces the following situation: P = $9, outp

Suppose a perfectly competitive firm faces the following situation: P = $9, output = 4,000, ATC = $8, AVC = $6, and MC = $9. How can someone determine whether this firm's market i…