General questions to get opinion

"Monetary policy remains quite accommodative, with short-term real interest rates still close to zero. In addition, fiscal policy will likely continue to provide considerable impetus to domestic spending through the end of this year." What does he mean by the above statement and what indicators would he use to illustrate his ...continues

The estimated cost function is C = 20 +2Q2. Show all work

1. Beta Industries manufactures floppy disks that consumers perceive as identical to those produced by numerous other manufacturers. Recently, Beta hired an econometrician to estimate its cost function for producing boxes of one dozen floppy disks. The estimated cost function is C = 20 +2Q^2. Show all work. a. What are the ...continues

Demand and cost functions for a function with a patent

2. Suppose you are the manager of Alpha Enterprises, a firm that holds a patent that makes it the exclusive manufacturer of bubble memory chips. Based on the estimates provided by a consultant, you know that the relevant demand and cost functions for bubble memory chips are Q = 25 - .5P; C = 50 + 2Q. a. What is the firm's i ...continues

Production function is given by Q = K1/2L1/2 and that capital is fixed at 1unit.

3. The manager of a national retailing outlet recently hired an economist to estimate the firm's production function. Based on the economist's report, the manager now knows that the firm's production function is given by Q = K^1/2L^1/2 and that capital is fixed at 1unit. a. Calculate the average product of labor when 9 units ...continues

Multiple choice question: Suppose that initially the price is $50 in a perfectly competitive market.

Suppose that initially the price is $50 in a perfectly competitive market. Firms are making zero economic profits. Then the market demand shrinks permanently and some firms leave the industry and the industry returns back to a long run equilibrium. What will be the new equilibrium price, assuming cost conditions in the indust ...continues

Multiple Choice Question: You are a manger for a monopolistically competitive firm.

You are a manger for a monopolistically competitive firm. From experience, the profit-maximizing level of output of your firm is 100 units. However, it is expected that prices of other close substitutes will fall in the near future. How should you adjust your level of production in response to this change? a. Produce more ...continues

Multiple Choice Question: Which of the following is true?

Which of the following is true? a. A monopolist produces on the inelastic portion of its demand. b. A monopolist always earns an economic profit. c. The more inelastic the demand, the closer marginal revenue is to price. d. In the short run a monopoly will shutdown if P < AVC.

Multiple Choice Question: Oligopoly to monopolistic competition

Which of the following may transform an industry from oligopoly to monopolistic competition? a. Entry. b. Takeover. c. Exit. d. Acquisition.

Gross Domestic Product (GDP)

Gross Domestic Product - definition, explanation of the different types of expenditure.

Nominal and Real GDP

Understanding of the nominal and real Gross Domestic Product.