Homework Help for Economics

For a profit-maximizing monopolist:

A firm is considering the purchase of a software analysis package that costs $450,000. Annual licensing fees are $25,000 (payable at the beginning of each year, starting in Year 1). The firm is bidding on a large 4-year government project where the new software will be used. If the firm uses an interest rate of 20%, what value for software costs should be put in the bid?

a) $514,725

b) $527, 650

c) $1,067,540

d) $1,094,346

Please show work!

10. One effective way to get the message about Individual Assistance to eligible tribal members is to:

a. Use conventional media outlets: regional newspapers, radio, and television.
b. Call every home in a particular region.
c. Rely on informal networks in Indian communities.
d. Set up a registration booth at a tribal social event (such as a powwow).

Starting from a perfectly-competitive industry, demonstrate what happens in terms of deadweight loss, consumer surplus, monopoly profits and equilibrium price/quantity if the market becomes monopolized.

Is demand-side (Keynesian) economics more effective than supply-side in producing cyclical stability? Support your answer

LifeKicks popular back-to-school sneakers, Jacobs costs them $40 per pair from their supplier. They

are able to sell Jacob's at $80 per pair during their peak fall selling season. Because the demand for the

shoes drastically drops after fall, LifeKicks is not able to sell the shoes at a discount and is forced to

donate the remaining pairs. The demand for Jacobs is normally distributed with a mean of 100. What is

the optimum order quantity?

a) Cannot be determined without a salvage value.

b) Cannot be determined without a standard deviation.

c) 69.15

d) 100

True of False: If the unemployment rate decreases, it is always true that total employment has increased? Explain in a sentence.

Assume M = $200, Px = $2, and Py = $1. Assume income is constant, Px decreases to $1.50, and Py decreases to $0.75. This change in prices is equivalent to changing income in which direction by what amount?

The graph below depicts an economy where a decline in aggregate demand has caused a recession. This economy's current level of real GDP (Y1) is below its long-run equilibrium, which is illustrated by the long-run aggregate supply curve (LRAS), and a price level (P1) below the equilibrium value of Pe. a. Without any fiscal policy, we expect the economy to eventually return to full employment on its own. Use the graph below to illustrate that process. Instructions: Use the tool provided 'New Curve' to plot the appropriate line (2 points total). After placing the curve, double click or tap the question marks next to it and choose whether to label the curve as AS1, LRAS1, or AD2 from the dropdown. b. Assume the government instead enacts fiscal policy to reduce the burden of the recession. Use the graph below to illustrate that process. Instructions: Use the tool provided 'New Curve' to plot the appropriate line (2 points total). After placing the curve, double click or tap the question marks next to it and choose whether to label the curve as AS1, LRAS1, or AD2 from the dropdown. c. When comparing the two options for restoring the economy to its full-employment level of output, the benefit of allowing the economy to return to full employment on its own, as seen in part a, is that: the economy will recover faster without fiscal policy. lower unemployment and higher real GDP are reached. full employment is reached with a higher price level. full employment is reached with a lower price level.

Describe the 4 causes of market failure. Why is it safe to assume that the elementary and secondary education will always be provided by the government?

Need all three questions answered please!

1.) Contrast a system of freeways with a system of toll roads. What are the benefits and costs of making it a public good as in Michigan?

2.) What is an externality? Give an example of a positive externality and of a negative externality.

3.) If environmental pollution is due to external costs, what is the role of government to bring about efficiency even in free market capitalism?

Discuss the relationship between the own-price elasticity of demand and total revenue. Provide an example.

How to Customize Engraved beer mugs?

Analysis of Pricing: You manageMBA Deli which sells meals at a price of $6 each.The average number of meals sold per month is 7,000. MBA Deli would like to increase its sales and profits.The MBAs running the Deli, know that if price is lowered, they will sell more meals.So they run an experiment.Price is lowered to $5 per meal in October and the number of meals sold increases to 8,000.

What is the Price Elasticity of Demand?

Is elasticity elastic, inelastic or neither?

What does this mean and why does it matter?

Will Revenues increase or decrease as a result of the price cut? By How much?

Beatrice has calculated the fixed costs for the Deli are $14,000 per month and each meal costs $2.50.Will profits go up or down as a result of the price cut?By How much?

Warren suggests that there wasn’t enough time in the experiment.He estimates that in the second month, MBA Deli will sell 9,000 meals.Please answer the following assuming that Warren is correct.

What is the Price Elasticity of Demand?

Is elasticity elastic, inelastic or neither?

What does this mean and why does it matter?

Will Revenues increase or decrease as a result of the price cut? By How much?

Beatrice has calculated the fixed costs for the Deli are $14,000 per month and each meal costs $2.50.Will profits go up or down as a result of the price cut?By How much?

Need all three questions answered please, the longer the better,

1. What does the term regulatory capture mean? What are some problems resulting from it?

2. Contrast market failure with government failure in the internalizing of externalities.

3. Is it possible for the government to go too far in trying to internalize externalities? Consider external benefits and external costs.