# Posts by economyst

Total # Posts: 1,117

Economic Theory
Hummm, what an opened ended question. Economists are both policy advisors and scientists. Here are a couple of quick thoughts. A scientist wants to base his finding and a advisor wants to base his recommendations on hard, reliable, and repeatable data. However, often, an ...

econ
Generally speaking, the two advantages of excess capacity are: 1) a threat to competitors that additional production is quite possible - that the firm has the ability to engage in a price war, 2) that physical capital, frequently, cannot be adjusted in the short run. So, firms...

Math
I think it means you have not provided enough information. [-4,10] would be a single point on a graph. For an interval you would need at least two points. That said, its possible that your teacher(s) intend that [-4,10] mean something else besides a single point; what that is ...

Economics
False: profits will decrease, but by an amount less than \$10M. The monopolist will cut back on production; it will produce something less than 1 million units.

macroeconomics
I'm not sure what you mean by "leakage schedule" That said, your marginal propensity to consume is .75, meaning your government spending multiplier is 1/(1-.mpc) = 1/.25 = 4. The taxation multiplier is one less than the government spending multiplier = 3. So, if ...

Economics
I believe I understand your question. And the answers are yes and yes. On your graph, the tax is represented by the area of the rectangle defined by P (paid by consumers), P (received by sellers), and the quantities 0 and Q=new equalibrium. (The difference in the two prices ...

microeconomics
They differ in the number of competitors. A monopolist, by definition, is the one and only firm producing some good or service. Under perfect competition, we assert there are a multitude of firms producing.

economics
currency/dollar and dollar/currency are really the same thing, just recipricals of each other. To graph the demand for dollars, put number of dollars (Q) in the x-axis, put the price (P) of those dollars in terms of the other currency on the y-axis. I hope this helps.

economics
Draw a demand-supply graph for dollars. Put dollars (Q) in the x-axis, put Euros (P) on the y-axis. Demand for dollars is the willingness of people to purchase Dollars with with Euros. The supply of dollars is the willingness of people to sell their cache of dollars for Euros...

Economics
Take a shot, what do you think. Hint: GDP is the sum of P*Q for each good. Hint 2: as 2005 is the base year, use 2005 prices for 2006 productions

Economics
The demand-supply curve for what?

economics
Lets start with am international supply and demand for US dollars, expressed in terms of of some foreign currency such as Euros. The demand for US dollars comes from foreigners who want to buy US goods. An increase in the demand for US goods would lead to an increase in the ...

economics
I don't know what N or R are. However, both formulas are essentially the same, only the decimal point is moved.

Economics
Take a shot, what do you think?

Macroeconomics
do you have a question?

Statistics
You have not provided enough information to answer that question. First, you need to specify an alpha for a desired confidence level (e.g., with 95% confidence, the margin of error is within 5%) Second, you have not specified what it is you are measuring. Is it a binominal (...

economics
I'm not sure if you are asking for help in solving a simple and specific economics problem (What happens to tax revenues in a community if they raise taxes on cigarettes?) Or a more general question involving the character of the long run demand for cigarettes in light of ...

Data analysis and statistics
Median is the middle number. First sort the numbers: I get 1,4,9,14,15,25,36. The middle (median) is 14. Mode is the most common occurance. You have two '8s', three '9s', two '10s' and one of everything else. The mode is therefore 9. Mean is the average...

economics
One reason is the ability to borrow; we can consume more domestic and foreign goods today at the expense of consuming less tomorrow. Another reason is inventory buildups. We made goods than we consumed yesterday. So today, we can consume more today than we produce today.

Economics
The tax was \$8, consumers paid \$4 more, producers got \$4 less. With linear supply and demand curves, the results must and symetric changes, the changes in producer and consumer surplus must be the same. Change in producer surplus is also 80. Also, I have no idea how to draw a ...

Economics
As you can see, trying to produce a graph on this Jiskha is an exercise in frustration. However, based on the facts you gave me, and ASSUMING your supply and demand functions are linear, I can reconstuct your your graph and determine the changes in producer and consumer ...

Microeconomics
It has been 25 years since I needed to look at Cournot models. But, I remember that things got complicated in the case where the firms had different cost structures. The intuition behind the Cournot model can be found in a Nash Equilibrium. Sorry I cant be more helpful.

Economic DQ's
Take a shot. What do you get. Hint: calculating the cost of chili in 1996 and today is easy. Calculate the ratio cost today/1996. For an index, make 1996=100, today's index will have the same percentage increase as the cost to produce the chili. take it from here

Economics-Tax Question
Go with d)

Math
I agree, I don't believe you can "prove" 1+1=2. However, by definition, 1+1=2.

economics
Take a shot, what do you think? Think about the various types of market failures in our current health care systems; both private funded systems and public funded systems (e.g., medicare and medicaid). Also, do we have a "moral" obligation to provide basic health ...

Economics
Take a shot, what do you think? Hint: draw a graph with an elastic supply and an inelastic demand. Then shift up the supply curve representing the tax. What happens to price and the amount of revenue received by suppliers? by purchasers?

Economics
Take a shot. What do you think?

Economics-Repost of Question
As you now know, graphs and graphics on this Jiskha site is near impossible. I don't understand your graph at all. That said: Consumer surplus is represented by the AREA below the demand curve but above price. A tax would raise, vertically, the supply curve by the amount ...

Economics
First, I disagree with your opening premise; a macroeconomic policy may well be the correct solution. The appropriate economic policy depends on the economic problems. High inflation, for example, may call for reducing the money supply (a macro solution I might add). High ...

Economics

Managerial ECON

Anonymous
I suggest you work out an example. Buy \$100 of stock at 50% margin means \$50 comes out of the investor's pocket, the other \$50 is borrowed. The stock rises to \$107, the stock is sold, the loan is repaid plus interest (of amount r). So investor is left over with (\$57-r). ...

Micreoeconomics
First, I don't know what you mean by "for P B 10" or "=0 for P<10" That said, equilibrium will occur when Qd=Qs. You have the equations, simply solve for Q and then P. Hint: I get Q=500, P=40. Since there are 25 firms, Qi=500/25 = 20 b) since each ...

Microeconomics
Industry supply curve is the horizontal sum of each firm's marginal cost curves. If SMC=q/4 then the supply curve will be P=Q/(4*35) = Q/140 = .007142Q Demand is P=20-.05Q At equilibrium, supply=demand, so, solve for Q and P. Hint: I get Q=350,P=2.5, which means q=10. b) ...

Comparing Data--Need AsAP
Huh?? What is your question? I don't understand at all.

Economics
GDP doesnt capture leisure time. So, GDP would go up if everybody worked more hours. Is this a good thing? GDP doesnt (directly) capture pollution. So, we could increase GDP by removing scrubbers from smoke stacks. Is this a good thing? Other things to think about. We could ...

macroeconomics
More of a Micro question. But, take a shot. What do you think? Hint: if this is economics class question, I suggest you posit your answer in terms of basic economic principals (e.g., price, opportunity cost, etc.)

macroeconomics
Take a shot, what do you think. Hint: be sure to discuss discounted future benefits.

probability of an event
Say you wanted to know the probability of getting seven when rolling two dice. You could make a bunch of rolls. Number-with-7/Number-rolls = estimated probability of rolling 7. Get it? Take it from here and expand.

Probability
Thanks drwls, and excellent suggestion to use the Poisson. Just for grins, I checked your results with my methodology; they are the same in all cases (at least up to the 5th significant digit)

Probability
Let P be the probability of winning = (1/175...). Let n be the number of tickets = 200M. Let x be the exact number of winners. First, calculate z, the number of ways you could have exactly x winners. It is n-choose-x; the formula is: z=n!/(n-x)!x! (where ! means factorial n! 1...

real interest rate is nominal rate less inflation. So... "raises"

economics
Think it through. On Monday, one dollar could buy .8703 euros. On Tuesday it could by .8807. The dollar could buy more euros -- the value of the dollar went up. .8807/.8703= about a 1%+ increase

economics
Sure, a large LONG-TERM current account surplus can cause problems. But first, the definition of "current account" has different meanings to different economists. For my purposes, I assume a simple situation wher "current account" is simply "balance of...

managerial finance
I believe something is missing. What is the current price of IBM?

finance *repost*
I believe something is missing; what is the current price of a share of JCPenney?

I get a different answer. An excel spreadsheet is very helpful for these types of problems. (However, I am aware that finance instructors are into using look-up tables rather that calculating everything out). I presume you can use EXCEL to calculate. Anyway, find V where: V = ...

Economics
I think I understand your question. The answer is yes. Price and consumption are inversely related as too are interest rates and consumption.

Economics
Ok, in your graphs, have both the supply curve and the demand curve touch the Y-axis. Consumer surplus is represented by the area below the demand curve but above equilibrium price. Producer surplus is represented by the area above the supply curve but below equilibrium price...

Finance
The formula is: P0 = sum( (DPS*(1+g)^t) / (1+r)^t) where g is expected growth (.05), r is the required rate of return (.1), and t goes from 1 to infinity. Unfortunately, my math skills have long since faded away; I am not confident in my ability to do infinite series. But I ...

Economics
what in the world is Zatab? And, what is your question?

Economics/Math
looks right to me.

economics
Draw simple supply and demand curves. Then shift the curve(s) as suggested in each answer. What happens to price? (Hint: answer b is incorrect. A decrease in demand would lower price and an increase in supply would also lower price)

economics
For a true monopoly, there is only one factor. A monopoly is the one and only provider of a particular good or the one and only provider of a particular service. Or are you asking: what are some factors that give rise to a monopoly? In this case, we can indentify several ...

statistics
There are 8 possible arrangements of the hats, each having the same probability of occuring (assuming a fair coin). BBB BBR BRB RBB RRB RBR BRR RRR The agreed strategy would be: If the other two players are wearing the same color, then guess the opposite color. Otherwise pass...

home economics
I presume you know how to draw supply and demand graphs (P on the y-axis, Q on the x-axis, ... etc). A reduction in production costs would increase supply. Shift the supply curve outward. What happens to equilibrium price? equilibrium quantity?

Macroeconomics
Energy is an important input to the production of many goods. When the price of oil drops, what should happen to aggregate supply? That is, at any given price will producers be willing to sell more, less, the same??. Shift your supply curve accordingly. Now then, dropping oil ...

managerial economics
Take a shot. What do you think. Hint: economies of scale means declining average costs as the size (output) of the company grows.

managerial economics
Drwls I must disagree with some of your answers. Economic Rent is not the same thing as Accounting Rent. Economic Rent is the value to a business from holding exclusive rights to an asset. In this example, its the value to having exclusive usage of the corner near Central Park...

Economics
First, lets assume the person is RISK NEUTRAL -- where the change in utility from an expected dollar loss is equal to the change in utility from an expected dollar gain. That said, this is simply a comparison of the expected return on the person's investment. Without the ...

managerial economics
Take a shot, what do you think? Hint: fixed costs matter.

Economics
Let me answer the small country case first (where the country has no impact on world prices). Then I'll expand the analysis to a large country. Draw a demand curve and a world price line (Pw). Now then assume there is a tarriff T. Final price paid by consumers is Pw+T = Pt...

Statistics
a) I belive your answer is the probability of NOT getting an interview. I think the answer is (.76)(.38) b) adjust accordingly from a)

working with data
.2*93 + .2*92 + .4*85 + .2*X >= 90. Solve for X.

Microeconomics-Consumer & Producer Suplus Graphs
Sorry, Im having trouble understanding whs you mean by the third area. But my advice is to keep it simple; consumer surplus is the area below demand but above price. Period. When you shift your supply/demand curves, check for 3 (and only 3) possible conditions. 1) the new ...

Microeconomics-Consumer & Producer Suplus Graphs
Ok, start by drawing initial supply and demand curves for stereos, with this slight caveat -- have the supply and demand curves touch the price axis (y-axis.) Consumer surplus is the area that is a) below demand, but b) above price. Producer surplus surplus is the area that is...

economics
Without a doubt, between week-1 and week-2, Bill's utility went down. He consumes less of everything (both x1 and x2 go down). Without a doubt, between week-2 and week-3, Bill's utility went up. He consumes more of everything.

managerial economics
The club earned 100K on a 1M investment. Assuming the owner can fully regain his initial capital, the rate of return ins %10. (If some of the capital is not recoverable, then the rate of return is less than %10, but the exact amount is unknown). The owner decided that his ...

econ

Total cost can be derived by integrating the marginal cost function. I get TC = 9=80Q - (.1/2)Q^2 + (.0001/3)Q^3. Devide by Q to get AVC

Economics
Draw a domestic supply and demand lines. Now then, impose a flat world price Pw line that cuts below the otherwise domestic equilibrium price. (Since the country is small, it has no effect on world price) Consumer surplus CS is the area below demand but above Pw. Domestic ...

economics
Examples: common good -- fish in the river. The fish are available to anybody who wants to go after it. public good -- A park - Something where nobody can be excluded, each person can enjoy as much as he/she wants. private good -- A burger at Wendys. The owner gets full and ...

ECONOMY
This link discusses the house bill's stimulus package, which was close to the final stimulus package actually passed and signed. www.heritage.org/Research/Economy/wm1778.cfm Here is another from Brookings: http://www.brookings.edu/opinions/2008/...

ECONOMICS
Long term effect is nil or negative. See my links above. Repost if you still have questions.

economics
Its really the VALUE of an economy's output is also its income. Think of a simple example, then expand. Consider a barber who gives 20 hair cuts a day and charges \$10 each. The value of the barber's output is 20*\$10 =\$200. But that is also his daily income. Now ...

managerial economics
Q1 discuss the law of diminishing returns (the marginal benefit of adding a productive resource must, at some point, decline.) Q2, discuss returns to scale. Increasing all factors of production by x% COULD raise output by x%.

managerial economics
Q1 energy efficiency is obviously not the same as economic efficiency. (Gas consumption is not the only factor in which people consider before buying a new car. Further, is energy efficiency worth the price? What is the present value of the energy savings over the expected ...

managerial economics
See my post above. Note that open ended questions like the ones you posted can be difficult to properly answer here on Jiskha. All I can do is point you is the right (or at least a promising) direction.

managerial economics
Business will "hire" a productive resource if the Value of the Marginal Product (VMP) exceeds the Marginal Cost of the resource. A computer is a piece of capital that helps the business produce some kind of output. So, the VMP of a computer goes up if: 1) the price ...

Economics
a) user-friendly software would INCREASE the demand for computers. You are correct about supply. So, Q goes up, price change uncertain. b) higher energy costs should DECREASE supply (shift inward), Increased interest in skiing increases demand, So, Price goes up, change in Q ...

Economics
Take a shot. What do you think. Hint: the planners should specialize.

statistics
I would solve this problem using basic combinatorial methods. Hint: an EXCEL spreadsheet is very helpful in these types of problems. The probability that 23 are cured is exactly equal to the probability that 2 are not cured. So, 25-choose-2 is 24*25/2 = 300. So, the ...

STATISTICS
see my post above.

economics
We, as a nation, import and export many goods and services to and from other countries. This is trade flow. If the good or service happends to be a form of capital (money or some physical factor of production) then you have a capital flow. So think about it, what are the ...

Macro econ
First, solve for Y. Y=C+I+G+NX. Substitute for all components. SO, Y=2000+.75*(Y-400-.1Y) + 1500 + 2000 + (1000 - .1Y) You have one equation and one unknown. Solve for Y. Hint: I get Y=12400 a) Im uncertain on this. I think of autonomous spending as spending unrelated to ...

Economics
In general, I would say yes, the model is still valid. Your equation would have a problem if the underlying model you are trying to estimate expects a non-zero itercept term. However, for most of the model's I estimate, I have no a-priori notion or expectation of what the ...

managerial economics
Take a shot. What do you think.

managerial economics
Take a shot. What do you think?

Economics
here is a picture http://en.wikipedia.org/wiki/Consumer_surplus

Economics
Draw your initial supply and demand curves. But this time have the supply and demand curves touch the y-axis. Indicate initial price and quantity Consumer suplus is the area BELOW the demand curve an ABOVE the price line. Producer surplus is the area BELOW the price line and ...

managerial economics
a) apply the law of diminishing returns. a) Apply an increasing returns-to-scale reasoning argument.

managerial economics
Do some research then take a shot. I or others wil critique your thinking

jean
So some research, then take a shot.

economics
Price elasticity is (%change-Q)/(%change-P) So, simply plug in what what you have in the formula. (%change-Q) / 20 = -.2 -- solve for %change-Q

e-Commerce
One obvious bit of evidence is the actual presence of e-commerce. Retailers, etc. would not bother with e-commerce (at least in any serious way) unless e-commerce were profitable. That said, here is a link to a department of commerce study on the growing size of e-commerce. ...

economics
You have not provided enough information to calculate the CPI. You need the price and quantity of every good in the fixed basket in 2005. You have only provided price and quantity in 2006.

Statistics
Jen: If you went to the wikipedia site suggested by SraJMcGin, you would have the formula for calculating probabilities following a poisson distribution. The Poisson distrbution is f(k,a) =(a^k)*(e^-a)/k! where a is the expected observed in a time period, and k is the actual ...

Statistics
The probability of seeing the first 61 in a batch good and the last 3 defective is (.96)^61 * (.04)^3 = X Now then, count the number of ways a batch of 64 could have exactly 3 defectives. The formula for n-choose-c or 64-choose-3 is (n!/c!(n-c)!) (where ! means factorial). 64...

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