The table below lists the prices and quantities consumed of three different goods from 2017−2019.

a. For 2017, 2018, and 2019, determine the amount that a typical consumer pays each year to purchase the quantities listed in the table above.

Instructions: Round your answers to the nearest whole number.

Instructions: Round your answers to two decimal places.

b. The percentage change in the amount the consumer paid is 8.88% from 2017 to 2018, and 73.46% from 2018 to 2019.

Instructions: Round your answers to two decimal places.

d. Suppose we take 2017 as the base year, implying that the market basket is fixed at 2017 consumption levels. Using 2017 consumption levels, the rate of inflation was ? % from 2017 to 2018, and ? % from 2018 to 2019.

Instructions: Round your answers to two decimal places.

e. Repeat the exercise from part d, now assuming that the base year is 2018. Using 2018 consumption levels, the rate of inflation is ? % from 2017 to 2018, and ? % from 2018 to 2019.

f. Your answers from parts d and e were different because : the base years put different weights on the goods prices have changed or the base years have the same consumption quantities or income has changed.

In lecture 2 of week 1, healthcare was proclaimed to be the most complex industry. Discuss this claim and whether you agree or disagree. Support your position with appropriate references

Fred and Barney are fishermen who operate fishing ships out of Nantucket. They own similar ships that can each

carry a day’s catch of 800 pounds of cod. Marginal costs of fishing are constant at $4 per pound (for simplicity,

assume they have no fixed -- or sunk -- costs). For the current discussion, assume that Fred and Barney are the only

fishermen and that the aggregate demand for Nantucket cod is characterized by the demand function Q = 1600 -

100P, where P is the price per pound of cod and Q is in pounds of cod. This corresponds to an inverse demand

function of P = 16 - .01Q, where Q = qF+ qB. Finally, the fish market operates in the following manner: fishermen go

out in the morning and catch fish, then they return to the dock and drop the catch on the dock. Customers gather

around and a market-clearing price is announced, at which point sales commence.

(f) If Barney expects Fred to catch qF, what is Barney’s best response function BRB(qF)?

(g) Using the fact that each fisherman’s equilibrium catch is a best response to the other’s, solve for the equilibrium

catch sizes qBCN and qFCN

(h) What will be the resulting price?

(i) Show that each fisherman’s Cournot duopoly profits will be $1600.

Question 4 [10]
Discuss the potential merits of housing subsidies granted by government to poor households and
evaluate their economic impact using a diagram.

1. How are LLC's different from Sole Proprietorships and Partnerships?

2.  Why have LLC's become such a popular form for small business's?

3.  Why have LLC's become so popular for politicians?

4. The book discusses several other business types. Select one and give a real world example of its use.

1. Suppose that Wal-Mart Stores, Inc. anticipates that profits over the next six years to be as follows:

1. Calculate the value of Wal-Mart Stores, Inc. today. Assume the discount ratio to be three percent.
2. Repeat (a), except assume the discount rate to be five percent.
3. Compare your answers from (a) and (b). Can you draw any conclusions about the value of the firm and the discount rate?

Given the demand function for a particular product is q(p)=(10-p^2)e^-p+3 for price p in thousands of dollars. Suppose the cost of producing q units of this particular product is In(q).

a) Find the profit function in terms of p, pie(p). Use log properties to simplify the function.

b) Show there exists a solution p where pie(p)=0. (Cite any theorems used and do not solve for p)

c) Suppose we are current charging $3000 and we want to increase profit by 1%. Approximately how much percentage should we change the price of the product? (P is in thousands dollars)

1. Question One
Briefly describe and explain the following investments terms (20mmarks)
a) Savings
b) Investments
c) Mutual funds
d) Bonds
e) Securities
f) Annuities
g) EAR
h) Amortizing
i) Bond valuation
j) capital

1. Fill in the blanks in the table below (show solutions)

Is this a short-run or a long-run production process? Briefly explain.

At what point does diminishing returns set in? Specifically in the context of this problem, why is there DMR?

2. Is it possible that diminishing marginal returns will set in after the very first unit of labor is employed? Illustrate the total product (TP_L), marginal product (MP_L), and average product (AP_L) in this case. Explain the shape of your graphs.
3. If the TP_L curve is a straight line through the origin, what do the AP_L and MP_L curves look like? Illustrate. Would the TP_L curve ever have this shape? Why or why not?
4. Which is more relevant to the firm when making decisions, the average product or the marginal product of a new hire? Explain.

an investor paid $100,000 at time zero for a project to generate $40,000 per year for next 5 years with zero salvage value at the end of year 5 , calculate ROR and draw cumulative cash flow diagram

A consumer with strictly convex preferences chooses an interior optimal bundle A as the solution to the budget constrained, utility maximization problem. If the price of one of the goods increases subsequently and we compensate the consumer with just enough income to reach the same utility level (but no higher) achieved with bundle A prior to the price increase, then bundle A must also be affordable (in the budget set) after the price increase with the additional income compensation. True or False?

what are the effects of leveling income inequality on developing states in the 21st century?

(answer in 200 word paragraph)

Suppose you are running a business and thinking to enter the monopoly market. As per your calculation, you can make a profit by keeping your product price 20% less than the monopolist. Explain, how the monopolist might react to stop you to enter the business?Suppose you are running a business and thinking to enter the monopoly market. As per your calculation, you can make a profit by keeping your product price 20% less than the monopolist. Explain, how the monopolist might react to stop you to enter the business?

A student who expects to graduate from Wichita State University in May of 2019 is considering whether to go on to graduate school. Which three (3) of the following are opportunity costs that the student must consider in deciding whether to go to graduate school?

The $250 the student spend last year on books while working on her undergraduate degree?

The $35,000 per year that she would make if she accepts a job that will be available to her after graduating with her undergraduate degree.

The $350 she plans to spend to fix the brakes on the car she is currently using to get to the Wichita State campus.

The $6,000 per year in tuition for her graduate degree.

The value of the time she would like to spend with her family on weekends instead of studying while working on her graduate degree.

The $900 she plans to spend on a trip to New York City with friends to celebrate after she graduates in May of 2019.

The $150 per month she spends on dog care for the dog she plans to keep regardless of whether she goes to graduate school or works next year.