Posts by economyst
Total # Posts: 1,118
ok,I think I understand your graph description. The three curves are isoquants, showing the mix of L and C that could be combined to produce a particular level of output. The three straight lines are budget constraints, showing the amounts of L and C that could be used given a...
The answer to your first question is no. Find in your text book some explanation of Multipliers. Without going into detail, the government spending multiplier is 1/mps, while the taxation multiplier is (1/mps - 1) Remember, MPC+MPS=1. So, with an MPC=.9, MPS=.1. So the ...
It seems you have answered your own question. Economic efficiency occurs when MPx/MPy = Px/Py. So, in your example, use more k and less l. Repost if you are still confused.
Peak-load pricing is recognition that the demand for some service is greater at certain times compared to others. That is the, demand curve keeps shifting in and out, depending on the time. The seller, recognizing this shifting, adjusts his prices accordingly to maximize ...
Take a shot, what do you think? Hint: just use common sense, would the event cause investors to increase or decrease their investment.
Tough question. I believe the statement is false. For a perfect price-discriminating monopolist, the demand curve is also the MR curve. This monopolist does not get the same from each person. For the first person, the U gets the highest willingness to pay (P1). For the second ...
Not profit maximizing. At the minimum of the AC curve it must be true that MC=AC. So, MC=$50 and MR =$60. The firm could do better by producing more as the marginal revenue from selling one more unit exceeds the marginal cost of producing that extra unit.
For a monopolist, marginal revenue is declining. The MR line can cross the MC line if MR is declining faster than MC.
Ms Sue's statement is correct. However I would add the following. A firm should hire until the value of the marginal product (aka marginal revenue product or MRP) equals the marginal cost of the input (aka the marginal factor cost or MFC). The MRP will decline because of ...
see my post above
Start with three concepts or laws. 1) people are profit maximizers. 2) law of diminishing returns (eventuall) kicks in (MC rises) 3) law of demand applies. That is, people purchase more at lower prices than at higher prices. (MR is flat or declining) If you are in the business...
Economics are these correct
1) c is correct. (Mostly semantics, but a change in supply is a shift in the supply curve, a change in quantity supplied is a movement along a curve. 2) go with b. (hint: draw supply and demand curves for DVD's. An increase in DVD Players does what to the Demand for DVD...
Manageral Economics (Economyst Only Please)
Thanks for your vote of confidence. 1) Look at the T-Ratio and especially the P-Value. You are testing whether the parameter is significantly different from zero. In all parameters except the intercept, the estimate of the parameter is significantly different from zero at the ...
go with b)
GDP is the total value of all FINAL goods and services. Go with b)
See my post to John-Q above.
I don't particularly care for your answer. Sorry. Here is my answer: The decline in the nominal price of personal computers is almost exclusively due to the multitude of improved technologies in production. The improved technologies keeps shifting out the supply curve; and...
[Urgent] Economics - GDP
GDP in 2000 is P*Q using 2000 prices and quantities. SO GDP in 2000 is 200*1 + 50*20 + 8*100 real GDP in 2001 is P*Q using 2000 prices and 2001 quantities. so Real GDP01 = 250*1 + 30*20 + 10*100
So, do you have a question?
Econ Please Help
See my post to "Urgent economics - GDP"
Economyst please help
This appears to be repost of a set of questions that was presented months ago along with my answers. I stand by all of my answers. Did you have a follow-up question?
Economyst please help
thanks for your vote of confidence. See my response to your next post. It appears you may have a follow-up question(s)
Again, see my post to your later postings
no, no, no. See my response post to "urgent economics -gdp" above.
I think all of them.
Remember, economic profits are not the same as accounting profits. Economic profits account for the opportunity cost of engaging in the business. If a business is earning economic profits, then somebody else will see there are profits to be made. So, more people will enter ...
1) obvious -- the lower the price the more a person will buy. 2) The equation for WTP is P=12-Q. If P=5 then Q=7. Elasticity is (%change in Q)/(%change in P). So change P by a small percent -- say 1%. What is the implied percentage change in Q. I get slightly more than 1%, ...
Because under a perfectly competitive market, there are lots of other producers trying to sell the same thing. Take for example a wheat farmer, and say the market price is $10 per bushel. What if the farmer charged $10.10, how much would he sell? Answer is zero, nobody would ...
micro-economics ---price...diminishing marginal..
1) at the minimum of the MC curve. 2) Where MC=MR and MR is price. 3) Sure, at any price below the minimum of the AVC curve 4) The industry will expand until Price equals the minimum of the ATC curve. (Assuming this particular soybean grower doesnt have a particular advantage ...
a sample survey of all students
What do you mean by "D sub 3" Does "P sub 26" mean the projected value of the 26th observation? If so, and if the scores are in sequential order, you could run a linear regression to get the projected value. X-mean/SD is the inverse of the "coefficient...
I think the correct answer is B. For A, income goes from 28000 to 30800, a change of 2800. Since the new income is between 30000 and 50000, the mtr is 20%. Of the change in income of 2800, 2000 was taxed at the 10% rate and the remaining 800 was taxed at the 20% rate. So, .1*...
Your answer is a bit brief, but correct. I would expand to say producers get $6 per unit and supply 100, Buyers pay $8 and receive 100, Uncle Same gets $2 each or $200 Prior to the tax, the equilibrium price was $7. Since the price to producers went down by $1 and the price to...
Hummm. I think the equation is y=5-(1/3)x. Its unique because no other linear equation will hit both known possible consumption points (4,3) and (9,2)
MRTS is the marginal rate of technical substitution. In a two-input production function, it is simply the marginal product of X over the marginal product of Y. That is MRTS = -MPx/MPy and MPx is simply the first derivitive of the production function with respect to x
I respectfully disagree. A person with HIV will answer honestly answer true in (5/6) of the time and automatically answer true in (1/6) of the time. That is every HIV person or 1/10 (10% of the population) answers true. Every non-HIV person answers true 1/6 of the time. So, (1...
Finance. PLEASE HELP ME
First, Finance is not my area. That said, I would think that if someone expects a 14% rate of return, either in dividends or price per share, then 1.14*76 = 86.64 with no dividends and 86.64-5. = 81.64 with a $5 dividend. The growth rate = 1- 81.64/76 = 7.4% 2) assuming that ...
Hummm. tough questions. Price fixing cartels are, initially designed to deliver maximum profits. However, they are difficult to maintain; too much incentives to cheat. So b is true. Since they are difficult to maintain, they are unlikely to yield maximum profits for a very ...
I think c. Tit-for-Tat is a game-theory strategy for holding other players in line; its a promise of "I'll do what you do"
see my post above.
5) I agree. 8) I agree. 9) I agree. 11) I think A. 15) I agree. 17) I agree. 24) I agree.
I presume you are from Canada. Larger under b) the bank is committed to maintaining a fixed interest rate. Use a IS/LM curve analysis. An increase in G shift outward the IS curve, Which, by its self, increase aggregate demand and interest rates. To maintain a constant r, the ...
shouldnt the 2nd diabram have 5 squares. I believe the CHANGE in the number of squares grows by 4 each time. So, 1, 5, 13, 25, and so on.
Assuming aztec will always spend $2million, no more no less, The PRICE elasticity of demand would be -1. P*Q = 2million
a) 2/6 picking the red and 2/5 picking the blue. (2/6)*(2/5) = 4/30 b) (2/6) picking the red (1/5) picking the second (2/6)*(1/5) = 2/30
Draw supply and demand curves for tea. Now decrease demand. What happens to Q?
Whew. Take a shot, what do you think? I or others will be happy to check your answers. Hint: Set marginal cost=marginal revenue and solve for Q; the answers to many of the questions will then easily fall out.
You don't say what statistic the .13 or the .10 represent. If they are R-squared and adjusted R-squared, then your model does not explain much of the variation in y.
Econ - Consumer behavior
In short, people will make choices to maximize their own utility but subject to their budget constraint. Do you have a specific question?
Antitrust laws often keep such mergers from happening. Further, if the firms are successfully colluding, then they are already maximizing combined profits; a monopoly gets them nothing.
Think of all of the "players" and then think 1) how did McD think they would respond, and 2) how did they actually respond. The players are: 1) McD corp, 2) McD's competitors, 3) McD regular diners, 4) non-regular diners. For McD Corp to think their plan would ...
Dell runs on Microsoft Windows, as does HP and Gateway. Apple does not. Think about the cross-price elasticity of demand for Dell with respect to 1) change in prices of HP products and 2) of Apple products. In additon to price, think about the non-price changes by Dell's ...
I too think A
in 1) I would add the word "dominant" after the word large. in 3) practically all goods in all markets except monopolies are differentiated or homogeneous. For a third condition of a oligopolistic market, I would add "firms tend to collude. In part 2, How do ...
Do a little research, then take a shot, what do you think? Hint: inferior good
This is fairly open ended. Take a shot.
This is all about supply and demand among collectors. Assume supply is completely inelastic at Q=183 and Q=150000. Draw a graph and see what happens to price.
Draw a supply and demand graphs for milk. Now increase supply due to the new techonolgy. Now put a price floor equal to the original equalibrium price. What is quantity demanded at this price? What is quantity supplied? Take it from here
To solve, I rewrote the supply and demand equations as W=f(Q). So: Ws = Qs/5 and Wd = 6 - Q/5. (So far, this is just algebra) Now then, the $1 per worker subsidy has the effect of lowering the supply equation by $1 for all levels. So, Ws' = Qs/5 - 1. Now set supply = ...
Because not everybody is unemployeed. If the unemployment rate hits 10%, that would be a lot. And, even unemployed people still pay taxes; although the taxes may not be income taxes. So, as Ms Sue correctly points out, lowering taxes gives most people more money to spend, and ...
For $600 the machine can produce 1800 units or 600/1800 = .333 per unit. For $50 the marginal worker can produce 200 units or 50/200 = .25 per unit. Which is the most cost effective? Take it from here.
Take a shot. what do you think? Hint: a) no.
What, exactly, do you need help with? What do you mean by "4 connections"? What do you mean by "the reason from this article"?
I agree on all seven
I agree on all three
Economics quick question
I would also go with false
One could certainly argue that monetary policy becomes much more effective under a single banking system compared to system with multiple banks whom are not beholding to anybody but their shareholders.
Do a little research, then take a shot. What do you think?
Do a little research, then take a shot. What do you think?
Do a little research, then take a shot. What do you think? Hint: C
The big two for local goverments are sales and property taxes
Your questions are as much about law as economics; and at a fairly high level at that. Further, you are asking for a multi-page essay/paper rather than succient answers. While we, the Jiskha volunteers, can generally critique your answers, I don't think anybody has the ...
A decrease in supply shifts the supply curve to the left. An increase to the right. -- Check number 1 A government subsidy lowers production costs -- should increase supply. In general, changes in demand should not affect supply or the supply curve. However, one could make the...
Economics Quick Question
Among the word choices, I too think "supply" is the best choice for the blank.
a) both local (2/5)*(2/5) b) neither local both a Tads (3/5)*(3/5)*(5/6)*(5/6) c) neither local neither a Tads (3/5)*(3/5)*(1/6)*(1/6) d) one local, one at Tads 2*[(2/5)*(3/5)*(5/6)]
Take a shot. What do you think? Hint: first describe how the insurance company will react. (It would be helpful to know what the insurance parameters were before the contract negotiations. It also would be useful to know if there are alternative insurance options). Then ...
It might be helpful to list Janes factor costs. Think broadly. Obviously, there are costs for paint and brushes. There are also transportation costs, craft fair fees for having a table, possibly insurance, the cost of the garage or studio to to the repainting, etc. Also, be ...
I don't think so. I think B (but I am not super confident). See: http://en.wikipedia.org/wiki/Federal_Reserve
Take a shot, what do you think. (what do you mean by u=$8 ??)
Take a shot. What do you think? Hint: what is the optimal use of the acre of land if rice farmers must pay $150 (or $250) to sanitize?
whew. Quite a bit. But since you asked and since you demonstrated that you tried first. 50) I think d, average total cost 51) I agree 52) I think c, price takers 53 to 56) I agree 57) I think b, zero economic profit means zero opportunity cost 58 to 61) I agree 62) I think b. ...
see my earlier post to your question
coefficient of variation is the standard deviation divided by the mean. http://en.wikipedia.org/wiki/Coefficient_of_variation
This is more of an accounting question rather than an economics question; and accounting is not my area. That said, I believe this site has the answer you seek. http://www.justanswer.com/questions/1uamp-1-computing-earnings-per-share
economic mangement science
Wikipedia would be a good place to start
Brokerage fees are usually not a formula or equation, but a table of prices. Fees vary by brokerage houses. I suggest you go to web site for E-Trade and/or Schwab and look at their fee schedules
There is a 1-in-6 chance the eldest gets lane 1 and a 1-in-5 chance the younger gets lane 2. (1/6)*(1/5)=
The n-choose-x formula is n!/x!(n-x)! where ! means factorial. Soooooo 8!/2!(8-2)! = 7*8/2 = 28 ways
Hummm.... If it said "Having workers to finish the jobs" I would say "Factors of Production" If it said "Having only enough workers to finish two jobs instead of more", I would say "Scarcity" Not enough information here. I guess I would ...
Unions have been effective in affecting legislation regarding: 1) worker safety 2) worker conditions 3) number of workable hours in a week 4) notification requirement before layoffs 5) minimum wages 6) etc. Each of these has an impact on the level and elasticity in the demand ...
I'm having trouble visualizing your cash flow picture. Further, I don't have whatever lookup tables you are using. Sorry. That said, the formula for converting something to a present value is PV=Vn/(1+r)^n -- where n is the number of years in the future, and r is the ...
An excel spreadsheet is very good for these kinds of problems. Unfortunately, this problem will contain an ugly 'sum' part. (Finance guys are into these look-up tables, which appears to be the path you are heading. I prefer using math and an excel spreadsheet -- ) ...
College Micro Econ
Optimal pollution will certainly be positive. (I'm not sure what "marginally incremental for additional pollution" means.) That said, optimal pollution will occur where the marginal cost of removal equals the marginal benefit (to society).
I'll go with C
Interestingly, you are asking for the break-even level of output rather than the profit-maximizing level. Hummm. Anyway. This is simply an algebra problem. First collapse the two Q terms in TC. So, TC=800,000+358Q + 40000 Total Revenue is P*Q. So, TR=4000Q-3Q^2 + 600Q Set TC=...
20000/12000 = 1.6667 a 66.67% increase.
Always always always. Maximize where MC=MR. You are given both equations. Use algebra and solve for Q. Plug this optimal Q into the demand equation to get P.
right, my bad.