Posts by economyst
Total # Posts: 1,118
ECON-one was wrong?
Your prof's answers are initial responses to the change from taxes. With a $100B increase in taxes, INITIALLY, 60B would come out of consumption and 40B out of savings-- b) private savings falls by $40B. c) National savings is sum of public+private savings = +100B-40B = ...
Hummmmm. I don't think so. The supply of savings is a relationship between interest rates and the amount of money people are willing to save. Now then, why would savings decrease as a result of the policy change? What would you do, savings wise, if the government lowered ...
You have not provided enough information. Usually, with this type of problem, you are also given a demand equation. Plz check, then repost.
I would think that closing some military bases, and moving such operations to other bases, improves the overall efficiency of government spending on military. (Takes advantage of economies of scale, etc.) However closing a base can clobber the local economy.
Wikipedia has a fairly good explanation. Go to Wikipedia and search for "Compensating Variation"
Well Greg. You have posted this question a number of times. Yet you still have not shown your own thinking on this problem. The volunteers here want to help students. This does not mean doing the student's homework. Trust me, you will get a much better response if, when ...
I believe you want to find GNP such that MPS*GNP = planned investment
Planned investment = planned savings
I get 33.333% The each unit of energy has 3 possible landing. So the total possibilities are 3*3*3 = 27. There are 3 ways in which B has one unit and is the first unit. (BAA, BAC, BCC). So, there must also be 3 ways where B gets the second unit and 3 ways where B gets the ...
ECON-can anyone help
Do a little research, then take a shot. What do you think? I will be glad to critique your answer. But, I am reluctant to just give you the answer.
Take a shot. What do you think. Hint for a) think about opportunity cost. Hint for b) think about budget constraints.
Tahe a shot -- what do you think?
Do a little research, then take a shot. What do you think? Hint: MV=PQ=(nominal GNP)
Take a shot. What do you think?
see the response to Ant by SraJMcgin
always always always, MC=MR. First rearrange the demand function to be P=f(Q). That is P=300 - 3Q Now then Total revenue is P*Q. So TR=300Q -3(Q^2) MR is the first derivitive of TR. So MR=300 - 6Q MC is the first derivitive of TC. So MC=(1/2)Q MC=MR - use algebra and solve for...
I presume that U=($)^(1/2) = sqrt($). Calculate the expected utility under both choices. U1 = .50*sqrt(46000) + .50*sqrt(14000) U2 = .25*sqrt(46000) + .50*sqrt(30000) + .25*sqrt(14000) Take it from here. BTW, not playing at all gives the highest expected utility.
Since this is at least the second post of this question, I think I better answer it. How is your calculas. Mine is a bit rusty. But here goes. (I hope there are no typos below). Let w be the price of labor (L), z be the price of capital (K). (Let y be the lagrangian multiplier...
Whew. when I first read the problem I thought you were trying to find the probability that ANY two pairs were together. But, as I reread the question, you are looking for the probability that ALL pairs are together; much easier. Choose the first pair to lay down, there are 5 ...
1) At least some criminals are rational decision makers, who respond to price and price changes. If the "price" imposed on crime (that is the punishment imposed for getting caught) goes up, we would expect criminal behavior to go down. 2) the probability of getting ...
Because of the recession, less people are spending money on books. That is, because of the recession, at any given price, less books will be demanded -- the demand curve shifted inward. Because fo the recession, more people are willing to work. So, you can pay your workers ...
Take a shot, what do you think. Hint: price elasticity is (%change in quantity demanded)/(%change in price)
If wages are flexible downward, I agree. More willing workers means the factory can employ all the workers it needs at a lower wage rate.
Take a shot, what do you think. Start with a simple supply/demand diagram then shift the curves as you think. e.g., closing a factory would shift the supply curve inward.
oops, sorry stupid mistake. if the dinar devalues by 45% that means 1 dinar = .55 dollars. Take it from here.
Use simple algebra, and start with an example. Say, initially, 1 dinar = 1 dollar. Then the dinar devalues by 45% so that 1 dinar = .65 dollar. With this, how many dinar's is 1 dollar. Well 1 dollar / .65 = 1.54. So, the dollar appreciated against the dinar by 54%.
take a shot, what do you think?
do a little research, then take a shot. What do you think?
Im stuck. I get a result where either the wage rate or the price of capital is negative. (I presume Min(1/3K,L) means the minimium of (1/3)*K or L). So, to produce 1 more unit of Qa, the firm must use 3 units of K and 1 unit of L. That is MPa=3K+L. Similarly, MPb=2K+L. Let z ...
I get firm A using 20 L and 10 K, firm B using 20 L and 20 K.
oops, my bad algebra. I divided by 3 instead of multiplying by 3. So, P should be P=300 - 3Q. But follow the same methodology as before starting from here.
always always always, MC=MR. First rearrange the demand function to be P=f(Q). That is P=33.33 - Q/3 Now then Total revenue is P*Q. So TR=33.33Q -(Q^2)/3 MR is the first derivitive of TR. So MR=33.33 - (2/3)Q MC is the first derivitive of TC. So MC=(1/2)Q MC=MR - use algebra ...
In Excel In A1 enter 365 In A2 enter +A1-1, copy A2 to A3...A365 In B1 enter +A1/365 copy B1 to B2...B365 In C1 enter +B1 In C2 enter +B2*C1 copy C2 to C3...C365 and you are done, Cell C365 has your answer.
I agree with all of your answers for A,B,C, and E. For D, I must abstain. I have never seen the words "cyclical" and "noncyclical" to describe the income elasticities of goods. In my day, a good with an income elasticity greater than one was a superior good...
Price elasticity is calculated as the (%change in quantity)/(%change in price). Substitute income for price and you would have income elasticity. Substitute the price of some other good and you would have a cross-price elasticity, etc. We say something is elastic if the ...
Take a shot, what do you think. Hint: In general, price taker's do not have long run economic profits. Hint 2: be sure to consider opportunity costs to firms.
Economics- please check
I agree with all of your answers.
an EXCEL spreadsheet is very useful for these types of calculations. PV = sum[ 100./((1.+r)^i) ] where i goes from 1 to t. take it from here.
Total revenue, with 2500 sales, is 150,000. Ergo, price per unit is 60. Variable costs per unit is 90,000/2500 = 36. So break-even is TR=TC which is 60*X = 300,000+36*X. Solve for X
First, you have not provided a ounces cutoff value for "underweight". Second, take a shot -- what do you think. Hint -- think normal distribution and look a the number of standard deviations away from the mean that coincides with .5%
price elasticity is (%change in Q)/(% change in P). Here Q is the number of jobs and P is the price of labor aka the wage rate.
To move from a deficit to a balanced budget, lawmakers must raise revenues and/or lower spending. Period. Not only do taxes raise revenue, governments also collect money from fines, penalties, and user fees. (Although, by comparison, these are tiny). And governments spend on a...
let x be the first integer. 2(x+2) = 3x-13. Solve for x
did you mean, 'what is the slope of y=4x+2' ??
Use algebra then take a shot. Hint: a surplus occurs when Qs>Qd, a shortage occurs when Qs<Qd, and equilibrium is when Qs=Qd. Plug the various prices into P and solve.
I would think a counter-offer would be best.
I would characterize payments to the subcontractors as variable costs, NOT fixed costs. Lease Payments and Overhead are definately fixed costs. I would count advertising as a fixed cost (as it was purchased at the start of the year). However, one could argue that advertising ...
Total revenues are 5.0, total costs are 4.5, so accounting profit is $500,000 However, Bob and Jane, while likely working just as hard before, gave up $250,000 in wages. Add to this the $50,000 in lost interest income. So, economic profit is 500,000 - 300,000 = $200,000
The firm could fire one worker -- production goes down by 40 and use the savings to buy $20 worth of capital -- output goes up by 80, for an overall net gain of 40. Profit is maximized when MPk/Pk=MPl/Pl (MP - is marginal product, P is the input price)
your a) and b) look correct. For c) you are almost there. You have Ln = dTUn/dXn - LambdaPn The first term to the right of = is MUn. Also, at a maxima, the whole term is zero. So you have MUn - LambdaPn=0. Thus, MUn = LambdaPn. This is true for all goods. So, MUx1=LambdaPx1 ...
Since there is only one variable given, I would have plenty of doubts. e.g., what if the good hunter charges $300 per day while the lesser hunter charges only $100. Or, what if I have all day and only want one deer. So, I would answer 'no'
Unlike supply, the industry-wide demand curve is NOT the sum of the demand curves faced by each individual producing firm. The industry-wide demand curve is the result of summing individual consumer's demands
.80*.10 + .20*.18 = .116
take a shot, what do you think? Hint. With the given constant returns to scale, and that all labor and capital can be purchased at constant prices, the TC 'curve' should be an upward sloping line, and the MC and AC curves should be flat lines.
do a little research, then take a shot. Hint: say the price of palladium doubled, how much less passadium be used? I can think of at least two reasons.
Do a little research, then take a shot. Hint: accounting profit does not take into account opportunity costs. Hint 2:, fixed costs are costs the firm must pay regardless of output.
For B) First, if the firm faces a downward sloping demand curve, then the firm has some monopoly power -- Use the general monopoly model to figure your solutions. While true that you don't know what costs are, you can be certain, at least, that marginal costs are positive...
I agree with your methodology and answer.
I suggest that you use the methodology suggested by Mathguru in your next post.
It looks like you have not provided the full problem.
Do a little research, then take a shot. Hint: Draw a picture of a natural monopolist; (Demand and MR curves, and AC and MC curves). The defining characteristic of a natural monopolist is that AC is declining for most (all) of any likely output. If AC is declining, what does ...
Hummm. This firm should act like a monopolist. Your P=15 and Q=60 are what the monopolist would do sans any government intervention. With a price cap below what the monopolist would charge, simply plug 14 into the demand equation and solve for Q. Total revenue will be 14*Q. ...
Foreigners using US health care increase the share of GDP by the health care industry
Do a little research, then take a shot. Hint: go with A
As a tie breaker, I would join with mister and go with A
a) calculate the present value of the investment. Since this requires a rate of discount (r), which you do not provide, just show the formula. The PV of the investment is 10000*(1 + (1+r) + (1+r)^2 + (1+r)^3 + (1+r)^4)) for b) increase a) by 10%
Think it through and then take a shot.
Assume all of one's income is spent on the two goods. Hint: If a good is elastic and price goes up by, say, 10%. Do one spend more dollars on that good or less dollars.
First b) Always, always, always -- maximize profits where MC=MR. In Europe, MR is 10-2Qe. As MC=2, then 2=10-2Qe. Solve for Qe. Repeat for US, cept MR=20-3Qu Now then a gets a little tricky as there is a kink in the demand curve. For P above 10, the combined demand is simply ...
P=875 is the price that maximized total revenue. Plug this P into the original demand Q=3500-2P to get the quantity.
a) Demand is Q=3500-2P. If P=1500, Q becomes 500. Since there are 3 countries, Total Q=1500. b) Total revenue is P*Q = 1500*1500= c) Price elasticity is (%change in Q)/(%change in P). So, if P rises by, say 1% to 1515, then Q (in a country) drops to 470, a drop of 30. And 30/...
Hummm. The only advice I can give you is that the forward discount rate tells you what the market thinks the devaluation will be.
The coach could expect to receive over the next 4 years is: 225000*(1.08)+225000*(1.08)^2+225000*(1.08)^3+225000(1.08)^4 To get the present value, divide the first term by (1.12), the second term by (1.12)^2, the third by (1.12)^3, and the fourth by (1.12)^4
So the loan (B0) was 150*.8 = 120K The balance after 1 year and 1 payment would be B1=B0*(1.08)-P. B2=(B1*(1.08)-P = B0*(1.08)^2 - P*(1.08) - P .... B15 = B0(1.08)^15 - sum(P*(1.08)^i) Solve for the annual payment P such that B15=0. An Excel spreadsheet can handle this ...
Let P be his annual investment. You want $1M = P*(1.15)^40 + P*(1.10^39 + ... P(1.15) = 40P* sum((1.15)^i) So, with your hand calculator, enter 1.15 -store, *1.15 Mem+ *1.15 Mem+ ... Take it from here.
Let Z be income = Px*X + Py*Y You could say: Minimize Z=Px*X+Py*Y subject to the constraint that X*Y=20 or you could say: Maximize U=X*Y subject to the contstraint that Px*X+Py*Y=20
So, do a little research, then take a shot. I or others will be glad to guide your thinking.
I don't understand your Utility functions. If I read your post, literally, then: If Fred has 1 peaches and 10 oranges, his utility is same as if he had 9 peaches and 10 oranges. The utility for both mixes is 10? This does not make sense.
Because of "externalities" the market is unable to allocate optimal amounts of driving or street lights. In a) a person personally bears a very tiny cost due to the auto pollution he produces. However, everybody else must bear this cost as well. The cost of pollution...
Math help please!!
hint: what if you multiplied one of the terms by (-1/-1)
For these types of problems, I like drawing a probability tree. That said, I really don't understand your question. With 3 babies, at least 2 will be of the same sex (BBG or BGG) possibly all 3 are the same sex (BBB or GGG). Could you clarify?
Expand the denominators. y^2-49 = (y+7)(y-7) and y^2-2y-35 = (y+5)(y-7) Take it from here.
microeconomic first principals
i would go with b)
My bad, I re-get Q=12.5. take it from here.
This is a standard monopoly model question. (JALT acts like a monopolist). So, find the point where marginal cost (MC) = marginal revenue (MR). MC is easy. its the $4000 fee paid to Harvey. Total revenue is P*Q = 5000Q+40Q^2. Marginal revenue is the first derivitive of total ...
see my answer to your other posting of this same question.
see my answer to your earlier post.
I remember how to do this as "one-to-one" mapping problem, which can be solved graphically. Let me try to solve with calculas and algebra. CAVEAT EMPTOR - let the buyer beware. First its MUx/Px=MUy/Py or MUx/MUy = Px/Py. MUx,MUy are the first derivitive of U. MUx = (...
Let x be the speed (mph) of boat 1. The spead of boat 2 is x+4. Now then, regardless of the relative speeds, the sum of the two boats travel is 9.8 miles. They travel this distance in .7 hours or 9.8/.7= 14 mph. So, you have x + (x+4) = 14 or: 2x+4=14 or 2x=10 or x=5
Well, 2/19=8/76. So the denominator is always 76. The numerator goes from 8, 27, 46, 65, a change of 19 each time. Take it from here.
please help me
1) I would find a third country where the currency tends to move in an opposite direction. 2) think creatively. They are a myriad of remedies to deal with a trading partner that does not always act as one expect it should. International law and courts deal are often called to ...
Well, if all you know are the length of the sides, you need more information to determine the height. Perhaps an angle?
getting all incorrect is .75^17 = .0075
So, what is your question?
math, economics, game theory
First of all, Nash Equilibrium analyses are pretty advanced stuff. I understand the basics. However, I could be out of my league with anything advanced. Especially if you want to apply some differential function (calculas) to possible responses as you suggest in your earlier ...
economics- opportunity cost
Opportunity cost, for an individual, will change if relative prices change. E.g., for me, the opportunity cost of a Big Mac is about 3 double cheeseburgers. What would happen to my opportunity cost if the price of Big Macs changed, but cheeseburgers remained the same? ...
Whats your question?
For many people, eating something else
At equilibrium, Pd (price demand) = Ps (price supply), and that Qd=Qs. So, 12.4-4Q=-2.6+2Q. Solve for Q: 15.0-4Q= 2Q 15.0 = 6Q (15/6) = Q plug this Q into one of the original equations to get equilibrium P
ECONOMICS---- & desperate !!!!!
Think it through and apply simply supply and demand. Draw a world market for yen in terms of dollars. That is, put dollars on the Y-axis, yen on the X-axis, and draw supply and demand curves. Draw another world market for dollars in terms of yen. The relaxed restrictions means...