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opportunity cost and economic rent

suppose that the demand for the final product drops. Using labor demand curve D1 as the starting point, what happens to the demand for labor? What are the new equilibrium wage rate and employment level? Does the amount of economic…

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econ

1. Rain spoils the strawberry crop. As a result, the price rises from $4 to $6 a box and the quantity demanded decreases from 1000 to 600 boxes a week. Over the price range.a. What is the price elasticity of…

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Comparative/Absolute Advantage

Explain and give an example of comparative and absolute advantage. Which is the basis for trade and why? Make sure you dont say that one is operating at the lowest cost and the other at the lowest opportunity cost. Answers…

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#NAME?

Shooting Star Books is a small publishing company that specializes in science fictionbooks. Like most publishers, Shooting Star releases new books in hard-cover form andlater releases paper-back versions of the books. The marginal cost of printing both types of books…

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Economics Problem

8. Consider the following demand schedule. Does it applyto a perfectly competitive firm? Compute marginal andaverage revenue.Price Quantity Price Quantity$100 1 $70 5$ 95 2 $55 6$ 88 3 $40 7$ 80 4 $22 8a)Suppose the marginal cost of producing…

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Major Sources of Economic Progress

How do banks create money out of thin air?a. They can not create money out of thin airb. They print morec. They borrow moneyd. They make loansWhat argument does Bastiat make in the Negative Railroad?a. Job creation is more important…

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Mergers and Public Policy

12. Calculate the Herfindahl-Hirschman Index (HHI) for each of the following industries. Which industry is the most concentrated?a. An industry with five firms that have the following market shares: 50 percent, 30 percent, 10 percent, 5 percent, and 5 percent.b.…

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#NAME?

Suppose a consumer has the utility function u(x;y) = xy1/2. Suppose the prices and income are given as Px = $2;Py = $3; I=$900:a) Draw the budget line.b) Find MRS. Is it diminishing?c) Draw the optimal Bundled) Draw the Engel…

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Accounts Balances

The citizens of Pioneerland, whose currency is the choo, conduct the following transactions in 1995 in billions of $:Imports of goods +$250 billionExports of goods +$300 billionBorrowing to the rest of the world +$70 billionLending to the rest of the…

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