#### Production, Unemployment and Inflation

1. Suppose that in 2013, the economy produced 10 shirts at \$20 each and 5 hamburgers at \$5 each. In 2014, the economy produced 15 shirts at \$21 each and 10 hamburgers at \$6 each. 2. What is the value of real GDP produced in 2014 using 2013 as the base year? 3. What would be the growth in real GD...

#### Basic Concepts in Elasticity

1. For a particular product, a demand elasticity is a quantitative measure that shows: the absolute change in quantity demanded relative to the percentage change in any of the other variables included in the demand function for that product. the percentage change in quantity demanded relative...

#### Marginal Utility and Optimal Consumption

The attached table displays George's consumption of soda pop and pretzels. The price of each soda pop is \$2.00 and the price of each pretzel is \$5.00. A. Fill in the missing total utility, marginal utility, and marginal utility/price (MU/Price). Place the final answer for each in the correct sh...

#### Economics: Price Elasticity Questions

This analysis assessment has three parts. It is required to show the formula prior to your complete calculation. Part I. Using the midpoint method, calculate and interpret the price elasticity of demand for the following situation: a.When the price of oranges increases from \$1.00 per pound to \$1...

#### Total Revenue with Perfect Price Discrimination

Calculate the total revenue without price discrimination as well as with price discrimination, and put the data into the table below. Price____Qd____TR____TR (with perfect price discrimination) 20______ 0_____ -- ____ -- 18______12_____ ? ____ ? 14______18_____ ? ____ ? 10______26_____ ? ...

#### Calculating costs for a bread factory

You are the owner of a small bread factory and are thinking of lowering costs and expanding. Your small-business advisors suggested that you first review your operations and make some technological changes. Complete the following: Explain what a technological change is and how you can use it to l...

#### Applying elasticity concepts

Question 1 1. Which of the following is an important factor that tends to affect the magnitude of the own-price elasticity of demand for a good? a. The availability of substitutes b. Time c. The expenditure share d. The useful economic life of the good e. All of the above Question 2 ...

#### Effects of change in economic market

Ethanol is a motor fuel manufactured from corn, barley, or wheat, and it can be used to power the engines of many cars and trucks. Suppose that the government decides to provide a large per unit subsidy to ethanol producers. (Assume that there was no ethanol subsidy before). Explain the effects in t...

#### Stackelberg Equilibrium & SPNE

Please help me with the following: 5. Suppose that inverse demand is given by D(Q) = 56 − 2Q, Q = q1 + q2 and the cost function is TC(qi ) = 20qi + f Find the Stackelberg equilibrium and compare it to the Cournot equilibrium. 6. Demand and costs are as given in the preceding ques...

#### Hiring and Productivity

Most firms require labor to produce output. The number of workers to hire is often an important decision of the firm because it affects the costs and profits of the firm. Write on the following issues: 1. Suppose you are the manager of the firm. What advice would you give the owners to raise the ...

#### Game theory and fast food restaurants

Fast food restaurants tend to cluster together. That is, on one corner, there may be four similar fast-food restaurants. a) How game theory explain this behavior? b) If you were the manager of one of this fast food restaurants, what could you do to maximize profits?

#### Decisions for Profit Maximization

Managers make decisions with the expectation that profits will increase. Illustrate with one example the managerial problem and the rule or logic the manager should do in order to make a decision that will maximize profits.

#### Higher Markup

Which product would tend to have a higher markup in a supermarket, cigarretes or Colombian coffee? Explain. And what about Apple computers and HP computers in an electronics store?

#### Reducing total cost

Please can you help me understand the concept below? You work for a division of a textbook publisher that manages the company's economics textbooks. Senior managers have instructed you to find a way to reduce your division's total cost by 30 percent. Currently, your division handles three princip...

#### New Restaurant Concept

For the last 10 years, you have been working in the health food business. You have talked to many customers who have suggested a new restaurant concept. The restaurant would feature a variety of low-calorie meals (under 500 calories) made from healthy ingredients (e.g., organic fruits and vegetables...

#### Hiring a New Waiter

Given that hiring a new waiter will cost \$150 per week but will raise revenue of \$165, should the new waiter be hired? (a) Yes, because the new cost will exceed the revenue generated from the new hire (b) No, because revenue will not exceed the cost (c) Yes, because revenue will decrease...

#### Advanced Pricing Techniques

The Wall Street Journal is purchased both by general readers, but it also offers student pricing through universities. Weekly demand from general readers is given by DG = 1.2 - 0.01Q, and from students is DS = 0.8 - 0.01Q. Q is in thousands of newspapers. The cost of production doesn't differ betwee...