Posts by economyst
Total # Posts: 1,117
Is there a question here?
11th grade economics
In economics "captial" generally means one of two things. First is physical capital which is, as you state, a means of production e.g., machinery. The second is financial capital e.g., cash. Now then, it is a bit easier to relate financial capital to interest income...
1) 200*34.5*(1.01) = 2) 13459*(1.0675) =
The probability of not hitting oil is .8 The probability of not hitting oil in 5 tries is .8^5 = .32768. Ergo, the probability of getting at least 1 hit is (1-.32768) = .67232
I presume you can determine the price the monopolist will charge. (hint: MR=100-2Q, MC=10) Draw a graph showing the demand line, the MC line, the MR line, the maximizing price and quantity. Consumer surplus will be the triangle area below demand but above price. Producer ...
Business Math and Statistics
I'm having trouble coming up with a "common" circumstance example of why a firm would purchase an annuity. Annuities generally lose their liquidity. The most common reason why a firm would hold a pile of cash is to have cash reserves -- to pay for unexpected events.
There are a number of ways to solve this problem. Here is one. The standard deviation of a binominal is sqrt(n*p*q) where p is the probability of an event and q is 1-p. So, SD = sqrt(25*.38*.62) = 2.427 The expected number that 6 hours or less is .38*25 = 9.5. Now then (14-9.5...
If the $1892 was earned income (e.g., wages), the person would likely receive a hefty $757 earned income tax credit, which would be included in any "refund" check the person would otherwise receive.
ATC should be equal to $4 under the conditions you state
I don't understand your demand equations. You state the demand for text books is: m 2py Could you elaborate and explain your terms? I would expect the demand function for text books to be some function of the price of text books and income. Regardless, the questions you ...
At .1 per pound, the variable cost per bag is $5. Let n be the number of bags at break-even. So Tota revenue is 10*n. Total costs are 80000+5*n. Break-even is 10*n = 80000 + 5*n -- use algebra and solve for n.
then potentially a lot of things. 1) The industry is perfectly competitive (or nearly so) 2) Implying that no single firm has a "large" market share. 3) Implying that each firm in the industry produces a product that is not distinguished (different) than any other ...
How bout "from this group of 550+300+850=1700 students"?? Assumeing that you meant 1700 students, there are 400 from School A that took the bus. Ergo, P=400/1700 = 23.5%
I beg to differ. For a 20% increase in revenue to occur, people would need to purchase the same physical amounts of taxable goods and services they previously did and actually spend 1% more. This is unlikely because 1) with the effective higher prices, and a fixed budget ...
Lets start with the assumption that the firm, prior to the settlement, was operating at a profit-maximizing level; where Marginal Costs=Marginal Revenues. From the information, the firm must have some monopoly power. it sets a price above MC, and is operating in an elastic ...
Do a little research, then take a shot. What do you think? Hint: Be sure to understand import substitution policies vs export promotion policies. Hint2. How will foreign countries respond to such policies?
Do a little research, then take a shot. What do you think? Hint: simply understanding how a fixed exchange rate differs from a floating rate should answer most of your questions.
I don't understand why total fixed costs should ever be a major component to a calculation that should be made on the margin. The question is simple, does the expected additional revenues (MR) from the added sales force exceed the expected labor costs (MC) from the added ...
Managerial Economics (bobpursely please help)
see my post above.
See my post above.
see my post above.
Excek spreadsheets are very helpful for these kinds of problem. a) the probability of selecting a female is .3*.4 + .5*.5 + .2*.5 = .47. Ergo, the probability of picking a male is .53. The probability of picking all males is .53^50 = something really small. for n males it (50-...
Because leisure is a normal good. If you cut income taxes, then the after-tax income for each hour worked goes up. This effect alone should cause a person to want to work more. This is the direct substitution effect labor-for-leisure. However, leisure is a desireable thing. ...
So, I take it, this is a two-by-two table. The rows are Indian River and Interior. The columns are also Indian River and Interior. What are the values in the tables? That is, what do they measure or represent??
I'm having mucho trouble here. I need to see the table to see what is going on.
Macroeconomics - NX & Tax
In the long run, in an open economy, imports=exports. If a country limits imports but continues to export, then goods are flowing out and foreign currency flows in. What good is that foreign currency if the holders cant buy anything with it? (Think about it, if imports are ...
Macroeconomics - SOE
Let me elaborate with an example. Say something costs 2 euros and the euros to dollars ratio is 1. So, I need 2 dollars to purchase. (I take my 2 dollars to the exchange, and get 2 euros). Now let the euros/dollars exchange ratio drop to 0.5 NOW, I need to spend 4 dollars to ...
Macroeconomics - SOE
I think of the exchange rate as the number of a foreign currency units per dollar. e.g., euros/dollars. From this perspective, the statement makes perfect sense.
The Phillips curve plotted inflation against unemployment. So two correct answers: low inflation/unemployment or low unemployment/inflation
First, calculate the mean (average) number days lost. The deviation, for any observation, is the difference between the observed value and the mean.
do a little research, then take a shot. What do you think? Hint: think about what money is and can do for you. Physically, money (cept coins) is nothing more than a printed piece of paper
Do a little research, then take a shot. What do you think?
Take a shot, what do you think? Hint: just use common sense to answer this one.
Do a little research, then take a shot. What do you think? Hint: be sure to read up on the money multiplier.
Do a little research, then take a shot. what do you think. Hint. Be sure to read up on Monetarists, and the quantity theory of money.
Dell, HP, and Gateway largely build PCs which run on Microsoft, while Apple has its own operating system. So, HP and Gateway PCs are much closer substitutes for Dell PCs
Microeconomics - Pareto Efficient
I think your first sentence is right. However, your reasoning is a bit off-base. Pareto-efficient implies that people with a marginal benefit above the marginal cost of producing the good can purchase that good. The above reasons you gave for deadweight losses also imply some ...
Microeconomics - Normative Statements
I'm not sure what you are asking. That said, in cost-benefit analysis doesnt necessarily mean if one gains someone else must lose. A coomon social policy question asks whether some change in policy is a good idea or not. Under a pure pareto requirement you would have to ...
Like some of your earlier posts, some critical information is missing. What is the price of a cart? and what is the useful life (in years) of a cart?
a) put income on the x-axis, consumption (and savings) on the y-axis. At x=100 and y=150 put a dot. At x=200 and y=200 put another dot. Repeat for 300 and 400. Connect the dots. b) slope is rise over run. With each 100 increase in income (run), consumption goes up by 50 (rise...
Savings = income - expenditures. So, for the first example savings =-50
Use the multiplier. a) 8*10=80, b) -5*10=-50 and c) 20*10=200 Again, Am I missing something, some part of the problem, here?
I have the feeling I am missing something. Are the questions referring to some graph which I don't see??
Microeconomics - Oligopoly
The two firms agree to act as a monopolist. Sinc MC is zero for both firms, they will produce where MC=MR=0 (where MR is the combined MR for both firms). And when MR=0, the elasticity of demand is -1. So b is true. Now at this optimal production point, each firm producing its ...
I suspect there is something more to your question. The short, obvious answer is that output per worker increases.
Something is missing here. You don't present the estimated equation, only one observation. Plz re-check your problem and then repost if you are still having trouble.
In the UK it costs 6 cloth to get 2 wheat. Ergo, cost for 1 wheat is 3 cloth. In US it cost 5 cloth to get 1 wheat.
I don't know what "artifical supply creates artificial demand" means at all. A price ceiling that is below the otherwise equilibrium price creates a market shortage. (illustrate this on a supply-demand graph). I like your sentence about the black market. With ...
Can you assume the probability of success is the same for everybody? Does success for 12 mean that each person was successful? If so. Let p=probablity of success for one person. Let x be the known probability of success for 12 people. So for 12 people p^12 = x. Take natural ...
Integrate the MC function. MC is the first derivitive of TC. So, TC = 10Q + (5/2)Q^2 + C
Take a shot, what do you think? Hint: be sure to distinguish between economic profits and accounting profits.
The firm makes an optimal input choice when the marginal product of one input divided by the price (wage) is equal the marginal product of any other input divided by the price (wage) of that other input. So for printers MP=20, P=20. So MP/P=1 For presses, MP=1000, P=5000. So, ...
I can think of some prisoner dilemma outcome sets that would lead to cooperative behavior C). But I think the most likely outcome in a more traditiona prisoner dilemma game is E) Both players, interested in their themselves, will rat out the other by confessing. Further, ...
The marginal rate of substitution, in this context, is the amount of additional K you need to hold production constant in because of a decrease in L. (or vice versa) MRS = -MPk/MPl. In the production of X, MPk = (1/2)K^(-1/2)*L^(1/2) MPl = 1/2)L^(-1/2)*K^(1/2) So, MPk/MPl = -L...
Economics (Production Possibility Frontiers)
I think it is line from (X=8.94, Y=0 to (X=0, Y=40). The line will be in a bow-shape. (I presume by: X = K1/2L1/2 means K and L are raised to the 1/2 power.) To see this, plot a graph. (Excel spreadsheets would be very helpful here).
Because they are perfectly postively correlated, the covariance between the q and z is 1.00 Because, (while not explained or pointed out), the possible answers are expressed in percentage terms and the decimal point is moved over 2 places, the answer you seek is B.
First, derive a marginal revenue curve (like you did in your previous post.) So, P=50000, Q=1, TR=50000, MR=50000 P=40000, Q=2, TR=80000, MR=30000 P=30000, Q=3, TR=90000, MR=10000 and so on. b) he makes 3 cars, charges 30,000 each, and makes 10,000 profit. c) He makes 5 cars, ...
see my response to your earlier post.
Demand would simply be the relationship between price and quanty. E,.g, at P=18, Q=1. At P=2, Q=9.
Without insurance, Pete's expected utility is .9*sqrt(2*10000) + .1*sqrt(2*2500) = 134.3502884 utils So, what wealth give him equal amount of utility. Well, work the utility formula backwards. That is (134.3502884^2)/2 = 9025. Take it from here.
You state that q and z are perfectly positively correlated. This alone says the covariance of q and z is 1. The rest of the information you provide is a red herring.
If she makes 20, she sells all 20 and makes 20 profit. If she makes 50 there is a .5 chance she sells all 50 and makes a 50 profit, and a .5 chance she sells 20, throws 30 in the trash and makes a 10 loss. Her expected profit is .5*50 + .5*(-10) = 20. Since the sure-thing of ...
If you sold right now and put the money in the bank, after one year you would have 500*(1.05) = 525. After two years you would have 525*(1.05) = 551.25. So, assuming you get no enjoyment from looking at the painting, go with E)
take a shot, what do you think? Hint: calculate the change in revenue from each 0.2 increase in advertising, subtract the marginal cost of producing that extra unit. (e.g., calculate the change in profit from each 0.2 increase in advertising). Keep increasing advertising until...
If you are doing your dissertation, you must be well beyond anything we could offer. So, hows about joining the Jiskha crew and help mostly high-school level students with their homework?
take a shot, what do you think. hints: Max profit occurs when MC=MR, break-even occurs when TC=TR.
Take a shot. What do you think. Hint: think opportunity cost. What is the opportunity cost of holding the land and running a model on it?
I need more information. What exactly are you trying to graph. What are you being asked to do. When I see income and substitute in the same sentence, I am thinking you are being asked to illustrate income and substitution effects on a demand curve. Correct?
I'm having a trouble with your notation. This Jiskha site has mucho trouble in expressing mathmatical equations. (where did your "f" come from?) That said, this is more of a calculus question. MR is the first derivitive of total revenue, so Pdq/da looks corret. ...
if they each get one shot P=.50*.80*.75=.3 = 30%
Do a little research, then take a shot. What do you think? Hint: Maximize profit where MC=MR. In a perfectly competitive market MR=P. Hint2: the demand curve facing a firm in a perfectly competitive market is a horizontal line. (in economics terms: perfectly elastic)
Take a shot. what do you think?
follow the basic methodology that Drwls showed you in the previous post. Assume each color ball can be distinguished from each other. (e.g., name the green balls g1 and g2) First, the denominator. How many different ways can 3 balls from 12 be chosen. 12-choose-3 is 12!/3!(12-...
No, you are way off track. For utility maximization in spending on goods, you want the spend where the marginal utility per dollar is the highest. So, if MUx/Px is greater than MUy/Py then spend more on x and perhaps less on y. I presume your "10.00" is the price per...
I have no idea What is the question, and What does "5=(10,4)+40=(10,4)" mean.
I too am confused. The FDA's tested mean is below their "standard" of 30.2. How could they possibly conclude the acutual mean above 30.2??
There is no way these series could represent a linear equation. You have two different values for P -- 8 and 10. Yet both values have an associated Q of 110
do a little research, then take a shot. What do you think? Hint. Be sure to read up on the money multiplier.
Take a shot, what do you think? Hint: On a graph, Consumer surplus is the area below the demand curve but above price. Compare the area using the Price the Monopolist would change to maximize his profits vs the price where P=MC. You will need to use some geometry.
Microeconomics - Cournot
a) I agree b) I agree c) Cournot models can be tricky beasts. But in this example, I believe the soulution is easy because 1) both firms have flat MC curves and MCx < MCz. I believe firm X, in the end, will drive P down to 6 and Z will produced nothing. (I wish I had more ...
MACROeconomics - Game Theory
I'm having some trouble with your notation. Let me asssume that (x,y) means that x is the outcome going to player A, y is the outcome going to player B. If top left is a dominant strategy equilibrium, it implies A perfers outcome Top and B prefers outcome Left. Ergo, I ...
See my previous post on calculating the optimal quantity, then price. Compare that to the competitive case where supply=demand or 850-2Q=250+4Q -- solve for Q.
Always always always, maximize where MC=MR Total revenue is P*Q = 1000Q- 0.5Q^2. MR is the first derivative of TR. So, MR=1000 - Q MC is the first derivative of TC. So, MC=100 + 5Q MC=MR is 100+5Q = 1000-Q. solve for Q. then plug the optimized Q into TC and TR to derive the ...
you could randomly divide people into two groups, one gets BW and the other gets Color. The BW group is the control group. Or, as I gather, you want to give each student two list. Then, the control group would get BW and BW, while the test group gets BW then Color.
As I see it, the total benefit per person function is (1-.01Q)*Q = Q-.01Q^2. So, the national total benefit function TB is 100Q-Q^2. The marginal benefit schedule is the first derivative of the TB function. So, MB=100-2Q MC of a test is given as 10. Set MC=MB and solve for Q. ...
I think something is missing and something is odd. the supply equation doesnt have a Q in it and the demand equation has some weird character. Regardless, set supply=demand and solve.
First, the parameter estimates are for a and b. a is the intercept, b is the coefficient on N. (n and N appear to be used interchangeably). I would argue the equation does a poor job of predicting total earnings E. The R-Squared is well below a number I would like to see. The ...
see my post to Cheri above.
Set MC = MR and solve for P. That is 40P = 1000-10P
Do you have a question?
Its kinda hard to tell, but something in your answer looks odd. There is nothing in your profit equation that would produce the term "-2bQ"
Do a little research, then take a shot. What do you think?
Ok, you have 5 cards showing, meaning 47 remain. You have 4 hearts showing, meaning 9 remain. There are 47-choose-2 ways of picking the next two cards. = 47!/2!(47-2)! =1081 possible ways. This will be the denominator. Now then, the number of ways of picking a heart and ...
Both production runs of 300 and 400 produce the same profit and the maximized profit. Take it from here.
I believe I answered this in an earlier post. There are 9 possible values for the first digit and 9 for the second, and so on. So, there are 9^8 possible serial numbers, where no digits is a zero. Similarly, there are 8^8 possible values where no digit is a zero or a seven. So...
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: Lots of firms today have a 10+ percent market share and a regulator knowing a firm's MC is quite a tall order. So there are two you can eliminate.
Take a shot, what do you think? Hint: think about economies of scale (if any) and how that affects a supply curve.
Always Always Always. Set MC=MR. MC is the first derivitive of the TC function. So, MC=4+4Q. Solve for Q.
With a fair coin the probability of a given 7-flip series is equal to ANY 7-flip series. That is, P(HHHHTTT) = P(TTTHHHH) = P(THTHTHT).... There are 2^7 = 128 possible 7-filp series. This is the denominator. There are 4-choose-7 ways to have a 4 heads in 7 filps. 4-choose-7 is...