Economics

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…

Suppose a perfectly competitive market is in long-run equilibrium with a price o

Suppose a perfectly competitive market is in long-run equilibrium with a price of $12. Then there is a permanent increase in demand. As a result, in the short run the market price…

Suppose a person wants to have $1,000,000 (1 million dollars) when he retires. T

Suppose a person wants to have $1,000,000 (1 million dollars) when he retires. To achieve this goal, he plans to invest a certain yearly sum of money, starting one (1) year from n…

Suppose a person with an income of $50,000 pays a tax of $7,500. If the tax is p

Suppose a person with an income of $50,000 pays a tax of $7,500. If the tax is proportional, then how large of a tax will a person with an income of $100,000 pay? A) Exactly $7,50…

Suppose a piece of art has recently become available for sale and will be auctio

Suppose a piece of art has recently become available for sale and will be auctioned off to the highest bidder with the winner paying an amount equal to the second highest bid. Ass…

Suppose a pizza parlor has the following production costs: $4.00 in labor per pi

Suppose a pizza parlor has the following production costs: $4.00 in labor per pizza, $1.00 in ingredients per pizza, $0.70 in electricity per pizza, $1,500 in restaurant rent per …

Suppose a pizza parlor has the following production costs: $5.00 in labor per pi

Suppose a pizza parlor has the following production costs: $5.00 in labor per pizza, $2.00 in ingredients per pizza, $0.20 in electricity per pizza, $5000 in restaurant rent per m…

Suppose a politician makes the following comments regarding the World Bank data:

Suppose a politician makes the following comments regarding the World Bank data: I. China's exceptional growth between 1980 and 2000 supports the convergence hypothesis. II. The w…

Suppose a presidential candidate criticizes his opponent by saying his opponent’

Suppose a presidential candidate criticizes his opponent by saying his opponent’s economic policies have made the dollar weaker and cost American factory workers their jobs. This …

Suppose a price ceiling is set below the current market price. If the goal of th

Suppose a price ceiling is set below the current market price. If the goal of the price ceiling is to reduce total expenditures, it will be successful if the percentage change is …

Suppose a product produces substantial spillover costs. If the government adopts

Suppose a product produces substantial spillover costs. If the government adopts a policy that forces producers to bear those costs: the equilibrium quantity of the product exchan…

Suppose a profit-maximizing firm in a cfompetititvemarketproduces rupper bands.

Suppose a profit-maximizing firm in a cfompetititvemarketproduces rupper bands. When the market price for rubber bandsfalls below the minimum of its average total cost, but still …

Suppose a profit-maximizing monopoly is able to employ group price discriminatio

Suppose a profit-maximizing monopoly is able to employ group price discrimination. The marginal cost of providing the good is constant and the same in both markets. The marginal r…

Suppose a project is undertaken. There are n people that are on the project. Bei

Suppose a project is undertaken. There are n people that are on the project. Being on the project does not necessarily mean though that all contribute effort to the project. Each …

Suppose a public referendum is being held on whether or not to levy a tax on cig

Suppose a public referendum is being held on whether or not to levy a tax on cigarettes. Currently, the supply of cigarettes is given by Qs = -100 + 20P. You estimate the demand f…

Suppose a pure monopolist is faced with the cost data shown in the table on the

Suppose a pure monopolist is faced with the cost data shown in the table on the left and the demand schedule shown on the right. a. Calculate the missing total-revenue and margina…

Suppose a pure monopolist is faced with the cost data shown in the table on the

Suppose a pure monopolist is faced with the cost data shown in the table on the left and the demand schedule shown on the right. Calculate the missing total-revenue and marginal-r…

Suppose a random sample of size 42 is selected from a population with = 11. Find

Suppose a random sample of size 42 is selected from a population with = 11. Find the value of the standard error of the mean in each of the following cases (use the finite populat…

Suppose a random sample of size 50 is selected from a population with ? = 10. Fi

Suppose a random sample of size 50 is selected from a population with ? = 10. Find the value of the standard error of the mean in each of the following cases (use the finite popul…

Suppose a reduction in the domestic one-year interest rate expected to occur in

Suppose a reduction in the domestic one-year interest rate expected to occur in two years . All else fixed, will the reduction in interest rate have which of the following effects…

Suppose a reduction in the supply of oil has caused the short-run aggregate supp

Suppose a reduction in the supply of oil has caused the short-run aggregate supply curve to shift leftward to SRAS, as shown in the graph at right. The economy is currently in sho…

Suppose a relative has promised to give you $1,000 as a wedding gift the day you

Suppose a relative has promised to give you $1,000 as a wedding gift the day you get engaged. Assuming a constant interest rate of 10%, consider the present and future values of t…

Suppose a relative has promised to give you $1,000 as a wedding gift the day you

Suppose a relative has promised to give you $1,000 as a wedding gift the day you get engaged. Assuming a constant interest rate of 7%, consider th present and future values of thi…

Suppose a scientific report states that fish contain dangerously high levels of

Suppose a scientific report states that fish contain dangerously high levels of mercury (toxic to humans). At the same time, the price of diesel fuel, used by fisherman to fuel th…

Suppose a selective university only considers accepting students with a cumulati

Suppose a selective university only considers accepting students with a cumulative grade point average of 3.2 or higher. Students below this threshold are not considered. Suppose …

Suppose a selective university only considers accepting students with a cumulati

Suppose a selective university only considers accepting students with a cumulative grade point average of 3.2 or higher. Students below this threshold are not considered. Suppose …

Suppose a short-run total cost function is given by C = 100 + 50Q 0.2 + Q 2 : (a

Suppose a short-run total cost function is given by C = 100 + 50Q0.2 + Q2 : (a) Find out the fixed cost, variable cost, marginal cost, average variable cost and average total cost…

Suppose a silver miner finds a silver nugget and sells the nugget to a mining co

Suppose a silver miner finds a silver nugget and sells the nugget to a mining company for $200. The mining company melts down the silver, purifies it, and sells it to a jewelry ma…

Suppose a single parent can work up to 16 hours per day at a wage rate of $5.00

Suppose a single parent can work up to 16 hours per day at a wage rate of $5.00 per hour. The Texas Family Assistance Program (a social welfare program) offers cash transfers to l…

Suppose a small country is ruled by a military Junta. The government buys a new

Suppose a small country is ruled by a military Junta. The government buys a new jet for $50 million. The citizens of the country grow vegetables and sell them to China as exports …

Suppose a small economy produces only HD TV sets. In year 1,100,000 sets are pro

Suppose a small economy produces only HD TV sets. In year 1,100,000 sets are produces and sold at a price of $ 1.200 each. In year 2,100,000 sets are produced and sold at a price …

Suppose a small town has seven burger shops whose repective shares of the local

Suppose a small town has seven burger shops whose repective shares of the local hamburger market are (as percentages of all hamburgers sold): 23%, 22%, 18%, 12%, 11%, 8% and 6%. W…

Suppose a society consists of three cities (A, B , C. ) with populations of 99,0

Suppose a society consists of three cities (A, B , C. ) with populations of 99,000 , 51,000 , 6,000 people respectively. Suppose that the society has 15 doctors total. a. What cit…

Suppose a society consists of three cities (A, B , C. ) with populations of 99,0

Suppose a society consists of three cities (A, B , C. ) with populations of 99,000 , 51,000 , 6,000 people respectively. Suppose that the society has 15 doctors total. a. What cit…

Suppose a stage game has exactly one Nash equilibrium (select all that apply) Th

Suppose a stage game has exactly one Nash equilibrium (select all that apply) The Folk Theorem introduced in the notes assumes that actions are observable. In a finitely repeated …

Suppose a statistical study finds that the demand for Brand X automobile tires i

Suppose a statistical study finds that the demand for Brand X automobile tires is Q = 800-5P, where Q is the number of Brand X tires sold per year (in thousands of tires), and P i…

Suppose a steel plant dumps effluent into a river when producing steel, thus mak

Suppose a steel plant dumps effluent into a river when producing steel, thus making a recreation site downstream unsuitable for swimming and fishing. How could steel production po…

Suppose a stock had an initial price of $87 per share, paid a dividend of $1.80

Suppose a stock had an initial price of $87 per share, paid a dividend of $1.80 per share during the year, and had an ending share price of $73.00.    Compute the percentage total…

Suppose a study shows that the price elasticity of demand for Goodyear tires is

Suppose a study shows that the price elasticity of demand for Goodyear tires is more elasticity of demand for all tires. What could be a likely explanation for this? The price ela…

Suppose a technological advancement makes automobiles 50% safer, and at the same

Suppose a technological advancement makes automobiles 50% safer, and at the same time, the prices of automobiles go up by 25%. No other prices in the economy changed. Did the rela…

Suppose a technological improvement increases the productivity of a firm\'s capi

Suppose a technological improvement increases the productivity of a firm's capital and, simultaneously, its workers' union negotiates a wage increase. We can predict that: the fir…

Suppose a town council is thinking of implementing the imposition of a $350 per

Suppose a town council is thinking of implementing the imposition of a $350 per week rent ceiling on apartments in a city. Demand and supply curves are: QD 5600- 8P and Qs4004P pr…

Suppose a typical consumer\'s inverse demand function for bottled water at a res

Suppose a typical consumer's inverse demand function for bottled water at a resort area where one firm owns all the rights to a local spring is given by P = 15 - 3Q. The marginal …

Suppose a worker in France can produce 6 loaves of bread or 3 shirts in a day an

Suppose a worker in France can produce 6 loaves of bread or 3 shirts in a day and a worker in Germany can produce 10 loaves of bread or 6 shirts in a day. The opportunity cost of …

Suppose a worker in France can produce 7 loaves of bread or 4 shirts in a day an

Suppose a worker in France can produce 7 loaves of bread or 4 shirts in a day and a worker in Germany can produce 11 loaves of bread or 5 shirts in a day. The opportunity cost of …

Suppose all the dollar values in the following data are in 2000 dollars. Consump

Suppose all the dollar values in the following data are in 2000 dollars. Consumption $200 billion Depreciation 20 Retained earnings 12 Gross investment 40 Imports 70 Exports 50 Ne…

Suppose an American buys stock issued by an Argentinian corporation. The Argenti

Suppose an American buys stock issued by an Argentinian corporation. The Argentinian firm uses the proceeds from the sale to build a new office complex. This is an example of fore…

Suppose an American buys stock issued by an Argentinian corporation. The Argenti

Suppose an American buys stock issued by an Argentinian corporation. The Argentinian firm uses the proceeds from the sale to build a new office complex. This is an example of fore…

Suppose an airline flying on the Charlotte - Chicago route has estimated the dem

Suppose an airline flying on the Charlotte - Chicago route has estimated the demand curves for three different types of customers: business (no advance purchase), leisure (7 day a…

Suppose an airline flying on the New York - Chicago route has estimated the dema

Suppose an airline flying on the New York - Chicago route has estimated the demand curves for three different types of customers: business (no advance purchase), leisure (7 day ad…