MICROeconomics - Monopoly
a) I disagree with your MC. Constant returns to scale (and no fixed costs) implies AC=MC. So, I think MC=10000 b) I disagree. Always Always Always, maximize by setting MC=MR. So, for the domestic 20000-40Yd = 10000. Solve for Yd. I get Yd=250. (As a check, plug 250 into the de...
Income (I) elasticity is (%change Q)/(% change I). So, you have (%change Q)/(10%) = 2.0 So, (%change Q) must be......
Money and Banking
Do a little research, and then take a shot. What do you think? Hint: broadly speaking, what are the Fed's monetary goals? and how does the Fed achieve it's goals? and are there unintended consequences?
Did you mean 10 principles of economics by Mankiw? Hint: Virtually every economic current- events article can relate to trade-offs and opportunity costs; two of Mankiw's principals. I suggest you start there.
What exactly do you need help on?
Eric: do you have a question? Aklove: Do a little research, then take a shot. What do you think? I or other will be glad to critique your answers.
A fascinating question. Do a little research, then take a shot. What do you think. Hint: Think trade and barriers to trade, who holds the wealth, and what does the wealthy person do with his wealth.
The formula is MV=PQ, where PQ is the price level time output of goods and services. PQ is nominal GNP. So if M is fixed and V is fixed and Q is 5% higher, what must happen to P. That is MV = PQ = (zP)*)*(1.05*Q) -- solve for z
Without a zero, there must be 9^8 number of possible digits. Further there must be 8^8 possible digits that exclude both zero and 7. So, the probability at at least one seven appears is 1.-((8^8)/(9^8))
I dont think I fully understand your question. My answer would be "as efficiently as possible, like everything else that is produced."
I get 10/36
Maximize where Marginal cost = Marginal revenue. MC is the first derivitive of TC. Same same for MR. So MR = 300 - Q MC = 60 + 2Q Set MC=MR and solve for Q. Plug this Q back into TC and TR to calculate profit. AC = TC/Q = 5000/Q + 60 +Q For a minimum, take the derivitive of th...
First, I like to rewrite the demand function as P=f(Q). So, P= 4 - Q/200. Total Revenue is P*Q = 4Q -(Q^2)/200 MR is the first derivitive of TR. So, MR = 4 - Q/100 MC for Firm A is given as $2, MC for firm B is given as $4. Calculate the optimal Q for firms and B, by setting M...
Think of some major items that affect the demand for housing and some factors that affect the supply of housing. Affecting demand include: - quality of schools, - Income levels, - Population levels, - proximity to labor centers, - transportation infrastructure, - quality of pu...
100 and 100
Assuming you can have one and only one type of cheeze (i.e., no provolone and swiss sandwiches allowed), and assuming you cannot get extra toppings (e.g, no sandwich with extra mayo allowed).... There are 8 type of cheese and 5 toppings. With each topping, there are 2 possible...
correct. 500*(1+r)^10 = 1079.46 -- solve for r.
1) While the marginal cost of adding a passenger may be small, a typical flight typically has huge fixed costs. 2) it may be that flights from Detroit have huge profit margins -- such that an airline is willing to take a loss on getting people to Detroit, knowing that it will ...
To: Economyst - Can you please help me?
First, (And I hope this clears up confusion rather than add to it), I like to re-arrange the equation such that P is a function of Q. (When you graph a demand function, you always put P on the y-axis, Q on the x-axis). Re-arranging terms in your demand function. P=500-Qd. Tota...
To: Economyst - Can you please help?
First, lets re-write the demand equations, to be P=f(Q). First class: Pa = 4200 - 2Qa MRa = 4200 - 4Qa Excursion: Pb = 2200 - .25*Qb MRb = 2200 - .5*Qb a) set MC = MR in each equation, then solve for Qa and Qb. I get Qa=1000, Qb=4000. Ergo, Pa=2200, Pb=1200. b) Undoubtedly, th...
Advantages. 1) You get to ask exactly what you want, 2) you can control measurement error, 3) you have proprietary ownership. disadvantages, 1) Its a whole lot of work; a good survey design is lot more difficult than it looks. 2) unless you have a reputation for survey work, y...
I presume that AE means aggregrate expenditure. I gotta go with a). If net exports is always zero, the aggregate expenditure should not change a bit.
Hiring a printer for $20 means getting 20 more books, or $1 per book. Adding a press for $5000 means getting 1000 books or $5 per book. Hmmmmm, What do you think the publisher should do??
What is their basic economic questions??
a) could be short run, could be long run. Not enough information to tell. b) MC is the first derivitive of the Total Cost. So, MC = 2*Q c) Fixed cost are cost that the firm incurs, regardless of the level of production. In your problem, FC=100. d) maximize where MC=MR. Here 2*...
OK, lets start with the conventional shapes of the MC and AVC curves. The AVC curve has a U shape to it. At low levels of production, the firm can enjoy some returns to scale. But after a while, the law of diminishing returns kicks in, and costs begin to rise. This latter effe...
take a shot, what do you think. Hint: true, true, true
Take a shot, what do you think? query. By Q2, do you really mean Q^2?
Try here for US banks in the Federal banking system: http://www.federalreserve.gov/monetarypolicy/reservereq.htm State-chartered banks have their own requirements, which vary by state -- good luck with that
a-1) I agree a-2) I agree, except I would express it here on Jiskha as (p^2)/3 a-3) I get S(p) = (p^2)/36. Check my work. for b-2, shouldnt it be: (p^2)/(3*(w1^.5)*(w2^.5) ??
ECONOMICS - Perfect Competition
Ok, I see where you are going. I saw your answer y^3/8 and went huh?? What you really needed to answer was (y^3)/8. I attribute the problem to it being difficult to express mathematical terms here on the Jiskha site. I said y=f(x)=2x^(1/3). However my re-arranging terms, and g...
ECONOMICS - Perfect Competition
I first looked at your first question, and then I look at your answers. There seems to be a dis-connect. Your answers dont seem to match the questions. Here are my answers a) y=f(x)=2x^(1/3) b) The cost of producing y is equal to the number of number of stones needed times w. ...
health insurance can be separated into two broad types; public and private. public insurance is insurance provided by a government agency; Medicare and Medicaid are two examples. About everything else is private. So, a private option means people will buy their health insuranc...
Reasons why the cost of health care raises faster than most everything else includes: 1) aging population. 2) Increasing sophistication of medical equipment, 3) Large number of people with uncompensated care (i.e., people without insurance getting care and not being able to pa...
Econ-expected utility & insurance
I believe what you want do do is calculate John's Expected Utility. Incorporate into the utility function the insurance option. Let x be the number dollars of insurance coverage, each unit of x costs 0.10. So, the expected utility E(U) is as follows. E(U) = .95*(25000000 -...
That would be my interpretation as well.
A Yesser posted this very question yesterday. My response to you and to him is essentially the same: Take a shot, what do you think? Hint: Is an insurance policy a common product that people obtain to avoid financial risks?
see my previous post to this very question.
Do a little research, then take a shot, what do you think? Hint: What would an international trader do if he is buying or selling goods in a country with high expected inflation? What if the inflation rate is expected to be both high and uncertain? (e.g., could be 25%, could b...
Because its better, profit-wise, for a firm to be a monopoly and be regulated than to openly compete in an unregulated market. The firm is able to maintain it's monopoly because the regulators keep outside competition from entering by not allowing new cable lines.
Do a little research, and then take a shot. what do you think? Hint. GNP is an economic aggregate.
MICROECON - Perfect Competition
Because all the firms have identical cost structures, all firms would be operating at the minimum of their average cost curve. Further, in long-run equilibrium, Price=MC=ATC. So firms are not making economic profits. Now then, impose the $5 per unit tax. 1) Market price INCREA...
Take a shot, what do you think? Hint A: What is an insurance policy a common way people avoid financial risks? Hint B: What would the elasticity of coffee need to be in order for speculators to come in and buy coffee futures.
This is a rather open-ended question. Repost with your thinking. I or others will be glad to critique your thinking.
For a) you could calculate directly, or you could use a poisson distribution function. Let me calculate directly. The probability that exactly n return is 6-choose-n * .75^n * .25^(6-n) P(all) = .75^6 = .1720 P(5) = 6*(.75^5)*.25 = .3540 P(4) = ((6*5)/2)*(.75^4)*(.25^2) = .296...
I tells me that b is garbage, of which a person with such a utility function would want as little as possible -- zero would be ideal.
Well yes, there would be some saps who pay full price fot the 16gb. However, I believe most consumers are savy enough to recognize the difference. So, the quantity of 16gb models sold would certainly drop by a bunch.
With the quota, do you mean "NO more than 50"? Without the quota, the equilibrium price and quantity would be where supply=demand or (500-p)=(300+p) -- solve or p. I get p=100, ergo Qd=Qs=400. If more than 50 must be sold, no problemo. If no more than 50, and the quo...
See my earlier post to your question. The answer largely depends on whether players wages are treated as fixed costs or variable costs. The other important consideration is whether you think the number of seats available is fixed or not. I would argue that, for a professional ...
I would argue it should have no effect. Within the realm of professional sports, I would think that a player's salary should be treated as a fixed cost. And it the marginal costs that determine the shape of the supply curve.
Because the person/institution handling the transaction wants to be compensated for his services.
I am not an attorney. So my opinion counts for squat. But, from what little I know, I doubt Yana could win. Yana does not have a signed piece of paper from Oliver agreeing to the the terms. Oliver's sole knowledge of the terms of the "agreement" were established ...
economics-Budget Constraint & Utility
Ok, Put air-line travel miles on the x-axis, "all other goods" on the y-axis. On the x-axis, mark a point for 20000 miles, and another at 40000. Begin high up on the on the y-axis and start drawing a standard budget constraint line. However, when the line hits the 20...
Do you have a question? Hint: The OECD collects lots of international comparison statistics. Google OECD
I think you need to provide more information. Or you need to make some strong assumptions about how often a "not regular" attends (e.g., 50% of the time??)
Excel spreadsheets are very helpful for these kinds of problems. It seems to me, the firm has two options. Keep the existing harvester, in which case the sole economic benefit is the depreciation deduction. Or sell the existing harvester and pay a cap gains tax (including reca...
Marginal cost is the first derivitive of the total cost function. So,, MC = 6q + 5 AC = 3q + 5 + 300/q. To find the minimum AC, take the first dirivitive and set equal to zero. AC' = 3 - 300/q^2 = 0. Solve for q. Thus, q=10 at the minimum of the AC curve. So, at q=10 AC = ...
Do a little research, then take a shot. What do you think. Hint: unless stated otherwise, GDP means Nominal GDP
Take a shot. What do you think. Hint: what elasticity value implies raising the price will raise total revenue? What elasticity value implies raising prices will lower total revenue?
While you havent actually asked the question, I already know the answer. Bridget should buy more cheese and less wine.
Your question is way to vague to answer. Could you be more specific.
Do a little research, then take a shot. What do you think? Hint: I believe the 4 sectors you refer to are Consumption, Investment, Government, and Net Exports.
I can think of two reasons. First, the company has an accrual accounting system rather than a cash accounting system. Second, the company claims a depreciation deduction.
a) you did not provide an elasticity b) you did not provide a short run vs long-run elasticity. c) take a shot, what do you think? Hint: are people with lots of money more likely or less likely to be sensitive to changes in cigarette prices.
Thake a shot, what do you think? hint: elasiticty is (%change in Q)/(%change in P). And %change in P = .25/1.25 = 20% (Note: you could use the alternative mid-point method. It would slightly change the answer, but not affect the analysis)
I beg to differ from Visper. Probability of having a correct address is (95/100). So, probability of correct 12 in a row (or none incorrect) is (95/100)^12 = .54 So, probability of having AT LEAST one incorrect = 1-.54 = .44 Probability of having exactly one incorrect is 12C1 ...
Take a shot, what do you think? Hint: consider the very nature of a "fair" insurance policy, where the sum of the premiums is equal to the sum of the payouts plus admin costs.
Take a shot, what do you think? I or others will be glad to critique your thinking. Hind: could people buy or sell their rationing coupon?
To maximize utility, a consumer should purchase the item that provides the highest marginal utility per dollar. Then the next highest, then the next highest until the consumer runs out of money. So divide the MUs by the price and keep picking items until you run out of money. ...
An excel spreadsheet is very helpful for these kinds of calculations. You could calculate these pobabilities directly. Or, you could use a poisson distribution. I'll use a Poisson here. the formula for the poisson is P(k;l) = (l^k)*e^(-l) / k! where l is the expected numbe...
I believe the OECD collects statistics on world food production, and on world populations Goto www.stats/oecd.org, (or google: oecd, statistics) and follow the agriculture links and the population links.
Yours is a loaded and open-ended question. Ask yourself should access to health care be an basic human right, and therefore government has an obligation to provide care to people who cannot afford it. repost with your own answer. I or others will be glad to critique.
Take a shot; what do you think? Hint: use common sense; the likely outcomes are probably what you think would likely happen.
microeconomics: work-leisure model
First, I agree with your point b) as w increases, income as well as purchasing power increases. Since leisure, by assumption, is a normal good, as income goes up, the desire for more leisure should also go up. I think of the endowment effect is that we are endowed with a fixed...
The substitution effect is always negative. If price goes up, you want to buy less (and switch to something else). period. The income effect depends on how much money is left over after the substitution effect. If the price of milk goes up by 10% and you cut gallons purchased ...
Your prof used the mid-point method for calculating percentage change. Price changed by 2 from 6 to 8. Calculate the pct change from the mid-point. i.e., 2/7 = .2857 .2867 * 0.6 = .1714 QED
see my earlier post to this very question.
see my earlier posts to this very question.
Conceptually, start by drawing a standard supply and demand graph. Increasing supply means shifting the supply curve outward (to the right). Price should go down. 2) I like to eat pineapples with cottage cheese. If the price of cottage cheeze went down, I would buy more cheese...
Take a shot, what do you think? Hint: Assuming the guy is risk-neutral, calculate an insurance value Z such that 225-Z = expected wealth without insurance.
Do a little research, then take a shot. What do you think? Hint: raise both S and H by some percentage (say 10%). Does TC rise by: a) more than 10% (dis-economies of scope) b) less than 10% (economies of scope), or c) exactly 10% (zero economies of scope)
consumers pay $4, producers get $2, ergo the tax is $2 per case. time 6 million and the tax revenue is $12M
The probability of drawing an Ace followed by a (10,J,Q or K) is: (4/52)*(16/51). Since in blackjack, order doesnt matter, double this amount.
a) It should be (1/2)[x1^(-1/2)][x2^)3/2) b) I think decreases. Plug in an example. If x1 grows x1^(-1/2) gets smaller. c) the MP is correct. I think increases. Again, plug in an example. if x2 grows x2^(1/2) gets bigger. d) I agree e) i agree f) I agree g) I disagree. As the...
a) I agree b1) I agree b2) I agree (To smash 1 additional car cost $1 in method1 and $5 in method2) c1) I agree c2) I agree c3) I disagree. Set c1=c2 and solve for y. That is y+200=5y+10 (then round up)
The probability that the 1st driver says equal or better than average is .95. The probability that both say better than average is .95*.95 = .9025 Ergo, the prob that at least one says worse than average is 1-.9025 = .0975
MircroEconomics - Production & Cost
a) I agree b) His total cost from a) is Ay. So average cost is Ay/y = A. Since it cost Bob A for each car, regardless of the number, MC=A c) I agree d) for C(y) = Ay + B and AC(y) = (Ay + B)/y = A + B/y (I agree) However regardless of the advertising expenses, it still cost Bo...
By definition, a recession is a fall in a country's real GDP (for 2+ consecutive quarters). So, recessions are associated with less than full employment. More to the point, recessions are associated with a decline in spending either by investers or consumers (so shift your...
That last dollar sale of some item; didn't it cost anything to create the item? Note the difference between sales and profit.
Go to www.irs.gov and follow the links for forms and publications for prior years. Find the link for Pub 17. (Stupid IRS no longer puts the rate schedule in the instructions for Form 1040; only the look-up table) You will find that in 2004: SD(joints) = 9700. (extra if blind a...
Excel spreadsheets are very helpful for these kinds of problems. There are 9-choose-0 ways =1 to have a pizza with zero toppings. 9-choose-1 ways = 9 to have 1 topping 9-choose-2 = 36 ways to have 2 toppings 9-choose-3 = 84 ways to have 3 toppings Repeat for all 4 through 9 to...
Im confused by your statement "Twenty students assigned to an experimental group receive 30 in a control group"
Economics Today the micro view 13th edition
Take a shot, what do you think? Hint: how much R+D will companies engage in if governments can come in an tax away any economic rents generated by that R+D?
There are a few reasons why trade barriers can be a good idea (so I'm bothered by the word "only") That said, the most-cited reason for trade barriers is the protection of infant industries. I would go with 1)
For the avg cost curve to be flat, it must mean that the marginal cost must equal the average cost. Ergo, the MC curve must also be flat. Go with c)
Ah, snap 24. I enjoyed this game with my kids. 6 - (2*(8/4)) = 2
Since it is with replacement, (4/7)*(4/7)*(4/7)
take a shot, what do you think? Hint: d)