Tim purchases cookies (C), brownies (B) and jam (J). At his current levels of consumption, his MU_C = 10, MU_B = 15, and MU_J = 20. The price of a cookies is $2, the price of brownies is $3, and the price of jam is $4. Is the Tim maximizing his utility? If so, why? If not, what must he do to move his consumption toward equilibrium?

There are 2 players: Albert and Barbara. Albert has 100 cards which he distributes in 2 buckets. After that, he leaves 1 bucket for himself, and offers Barbara the other one. Barbara saw how Albert distributed the cards, but does not know which of the buckets Albert is offering her. Valuation of 1 card by Albert - 1 pound, valuation of Barbara -1.5 pounds. Barbara offers the price for the bucket offered to her, and Albert decides to accept the offer or refuse. They both want maximum payoff. If one player is indifferent, then he chooses an action that will benefit the other player.
a) In one bucket there are 100 cards, and in the other 0. Albert knows how many cards are in the boxes, but Barbara does not. What price should Barbara offer?
b) What is the best card distribution for Albert?

Suppose the firm knows that, there are three types of buyers: ?? = 100 − 4?,?? = 400 − 6?, and ?? = 300 − 10?. The firm’s ATC=MC=5.

1. Suppose the firm operates as a single price monopoly, what will be the market price, market quantity, and profit?

2. What will be consumer surplus, producer surplus, and deadweight loss? Draw a graph!

3. Under which conditions can this firm use segmented price discrimination?

4. Suppose that the firm conditions from c) hold, what should the firm charge in each

   market? What is output in each market? What is total market quantity? What is the

   firm’s profit?

5. Does segmented price discrimination of the market improve efficency? Why?

Suppose a pro sports franchise faces demand for tickets to its home events according to the function Q = 13000 - 50P, where P is the price per ticket in dollars, and earns marginal revenue according to the function MR = 260 - 0.04Q, where Q is the quantity fo tickets. For this franchise, the vertical intercept of the demand function is

a. greater than the vertical intercept of the marginal revenue function

b. equal to the vertical intercept of the marginal revenue function

c. less than the vertical intercept of the marginal revenue function

d. equal to 13,000 tickets sold

Suppose the sports franchise discussed in item above incurs marginal costs according to the function MC = 80 + 0.01Q. Assuming the franchise is a profit-maximizer, it will generate consumer surplus in this market of:

a. $676,800

b. $259,200

c. $129,600

d. none of the above

What does it mean to someone to connect in today’s world, and how does writing facilitate those connections?

1. Consider the orange-growing industry, which hires workers on a common labor market and sells oranges on a common product market. Firms in the industry have nearly identical production functions and capital.   Suppose that a freeze affects the industry in the following way: some oranges on each tree are damaged and cannot be sold, but others are fine. As a result, each worker takes longer to harvest oranges from each tree. What is the effect on Labor Demand for workers in this industry? Think carefully about all the components of Labor Demand.

12. U-shaped LRAC curves with a horizontal segment surrounding their minimum level exhibit

a. Constant Returns to Scale

b. Increasing Returns to Scale

c. Decreasing Returns to Scale

d. All of the above

13. Economist’s classification of a market’s structure will depend upon

a. The number of firms in the market

b. The diversity of products available to consumers in the market

c. The ease with which a firm could potentially enter or exit the market

d. All of the above

14. In perfect competition, each firm’s individual demand curve for their product is

a. Perfectly inelastic

b. Perfectly elastic

c. Downward sloping

d. Upward sloping

15. If a market is perfectly competitive, which of the following would be inconsistent with a

predicted long run equilibrium condition?

a. The marginal firm is operating at the minimum point on its LRAC curve.

b. The marginal firm is earning $0 economic profit.

c. The marginal firm is earning positive economic profit.

d. All of the above

16. Gloria runs her own candy shop. Last year, she spent $215,000 purchasing candy to sell in her

store and paid $35,000 in rent. She had no other direct costs associated with operating her

business and her total revenues for the year were $295,000. Assume that during the same year, if

she did not run her own shop she would have worked at her friend’s shop for a salary of $50,000.

Gloria’s economic profit was ______and her accounting profit was ______.

a. - $5,000 ; $45,000

b. $60,000 ; $15,000

c. $45,000 ; $80,000

d. $45,000 ; $60,000

17. A firm should shut down in the short run if

a. It cannot earn revenues that cover its total costs

b. It cannot earn revenues that cover its variable costs

c. It cannot earn revenues that cover its fixed costs

d. All of the above

18. The long run market supply curve could be upward sloping in a competitive market due to which

of the following reasons?

a. Expansion of the market’s size increases the demand for the inputs used in production,

pushing their prices higher.

b. Entry and exit of the market is costly for firms.

c. Expansion of the market’s size brings new firms that are less efficient than previously

producing firms.

d. All of the above

compare and contras two countries and the different Regulatory and Legal aspects of their different Global Business Environments

Show your understanding of the economics and competitive forces of the telecom industry. Describe why Verizon chose to go with fiber. Do you think this was a wise decision, or not? Why? Summarize clearly in as little words as possible.

For example:

Question: If income changes by $40 billion for each $2.28 billion change in spending, h much will income change by?

Answer:   91   (rounded down from the calculated value of $91.2 billion)

[Not acceptable would be: 91.2, nor $91, nor $91.2, et al.]

For the following five questions, assume the following characteristics of the monetary transmission mechanism:

The money multiplier is 2.33

Interest rates will change by 2.25% for every $75 billion change in the money supply.

Investment will change by $60 billion for every 1.5% change in the interest rate.

Income will change by $15 billion for every $3.8 billion change in investment.

1)Identify the change in income when the Fed does the following:

a. Buys $35 billion in bonds.

b. Buys $18 billion in bonds.

c. Buys $5.5 billion in bonds.

d. Sells $12 billion in bonds.

e. Sells $22 billion in bonds.

What health, Economic, Social and Lost Productivity Costs did the Opioid Crisis in the US cause?

2. What are the four major markets in the economy? Which variables are important in each of those markets.

a. If two markets are in equilibrium, which arguments are offered to suggest that all markets are in equilibrium.

b. What is LM Curve?

c. What factors will shift the LM curve?

Why do you think we’re (in academia) are seeing a resurgence of plagiarism? Is it a case of “the higher the stakes, the more pressure there is to perform” or are we as a society just getting lazy? Is it information overload?  From a leadership standpoint, should we be concerned?

You work for a very large engineering consulting firm. You have been asked to look at the viability of the company purchasing a private jet to fly staff to project sites around the world. A new Gulfstream G450 currently costs $40,000,000. Assume a 15-year service life, a salvage value of $24,000,000, annual costs of $2,500,000/year, and annual benefits of $3,500,000/year (time saved, increased business), a corporate tax rate of 40%, a CCA rate of 25%, and an after-tax MARR of 8% per year, compounded annually.

What is the after-tax net present value of this investment?