Inflation Problems

1) An economist has predicted that for the next five years, USA will have an 8% annual inflation rate, followed by five years at 6% inflation rate.This is equivalent to what average price. This is equivalent to what average price change per year for the entire ten year period? 2) One economist has predicted that during the n ...continues

Monopoly and Competition Problem

The optimum market quantitiy in a competitive market if: P=100-.5q MR = 100-q Ac= 10$ per unit Is this the way you calculate it? If not, how do you do it? Profit =MC=MR 10 = 100-q 90 = q How do you then calculate the quantity brought to market by a monopolist?

TVC curve

I need a detailed answer illustrated with a graph.. Could you graph a typical TVC curve and explain how it reflects diminishing returns?

Diminishing Returns and Returns to Scale

What is the difference between diminishing returns and returns to scale. How does each affect the behaviour of average costs?

Microeconomics Exercises

MicroEconomics Exercises 1) Price Ceiling A local market for three-bedroom rental units is depicted by the following demand and supply equations: Qd = 2000-P Qs = -1000+P where P is the rental price in dollars and Q represents the number of rental units. a) What is the equilibrium rental price and quantity of thre ...continues

Microeconomics

Problem Set #5 Pizza restaurants are identical and exist in a market that is perfectly competitive. Marty's pizza parlor faces the following demand and costs... a) Derive the profit-maximizing output quantity and the profits that are achieved. b) Is the market in long-run equilibrium? If not, decribe what will happen in t ...continues

Microeconomics - Introductory Course Level

The following table was calculated for an aluminum ingot producer. The table below illustrates the firm's daily short run production function along with the cost of 10 units of capital. The variable costs include only the cost of labour, and each worker is paid $200 each day. a) Calculate the marginal product of labour. b. C ...continues

If workers in the two industries have exactly the same marginal product and their product price is the same, will their marginal revenue product be the same?

Consider two industries. One is purely competitive and the other is a monopoly. Assume the labor market is purely competitive. If workers in the two industries have exactly the same marginal product and their product price is the same, will their marginal revenue product be the same?

Depreciation (straight line , sum of years digits and MACRS) ; Investment Appraisal (Present Worth Analysis, Annual Cash Flow Analysism Rate of Retun Analyis, Future Worth Analyis, Benefit-Cost ratio analyis)

This two problems MUST be done in excel format. Please include explanation 1. Office equipment whose initial cost is $100,000 has an estimate actual life of 6 years , with an estimated salvage value of $10,000. Prepare tables listing the annual cost of depreciation and the book value at the end of each 6 years , based on ...continues

8886- insurance

Subject: Insurance Details: Private health insurers tend to be quite passive in the face of health care cost escalation ? simply passing increased costs forward as increased premiums or back as reduced coverage and larger requirements for patient payment. (Think of Canadian drug insurers.) How would one interpret cost escalati ...continues