1. How did employees of Enron (and employees of the utilities company in Oregon) end up losing billions in retirement funds?

Consider a representative firm with the total costs of TC=16+Q^2 (and marginal costs of 2Q, MC=2Q) . The market demand curve is given by P=36-1/2Q and the starting market price is $18

1. Graph the starting scenario using comparative statistics

2. Why is this not a long run equilibrium?

3. What happens in order to transition to the long run?

4. Graph the long run equilibrium using comparative statistics

5. How many firms are in the market in the long run?

The following is a simplified Balance Sheet for a Canadian bank:

_______________________________________________________________________________________________

Great White North Bank

Balance Sheet

As at Dec. 31, 2017

Assets                                                                           Liabilities

Cash Reserves                          $ 20,000                      Demand Deposits                                  $100,000

Loans to Customers                       50,000                     

Investment in Securities                 30,000                                                 Equity

Fixed Assets                                 20,000                      Shareholders’ Equity                                 20,000

Total Assets                              $120,000                      Total Liabilities & Equity                      $120,000

_______________________________________________________________________________________________

1. What percent of its demand deposits is this bank holding in cash reserves (the reserve ratio)? (1 mark)

2. If a deposit of $10,000 is made, how much of this is lent out to maintain the same reserve ratio? How much can bank deposits in the system potentially increase as a result?  

3. Show the balance sheet after the bank receives the $10,000 deposit and then makes loans from that deposit.

1. The following two linear functions represent a market (thus one is a supply function, the other a demand function). Circle the answer closest to being correct. Approximately what will suppliers willingly supply if the government controls the market price to be $3.00 (You must first find the market equilibrium price and quantity in order to see how the $3.00 relates to them)? Q = 100 – 4.6P and Q = 75 + 6.2P
Possible answers: 2.3 84.3 86.2     89.3     93.1     93.6 (all close, but approximate)

2. There has been a change in the market (represented in 1 above). The change is represented by the following two equations. Circle the one correct conclusion that describes the market change. Q = 90 + 6.2P   and Q = 110 – 4.6P
Possible Answers: a. demand has decreased,  b. demand has increased, c. supply has decreased, d. supply has increased, e. supply has decreased and demand has decreased, f. supply has increased and demand has increased

3. Circle the function on the answer sheet that represents the marginal revenue (MR) function for this demand function: Q = 75 – 7P
Possible Answers: a. MR=19.57-.044Q, b. MR=21.74-.044Q, c. MR=26.09-.044Q, d. MR=33.33-.066Q, e. MR= 30.00-0.4Q, f. MR=10.71-0.28Q

4. Circle the quantity that maximizes total revenue (TR) for the marginal revenue (MR) function selected in number three (3).
Possible Answers: 38.25   44.48   49.41   50.50   59.30   75.00

5. If supply decreases but demand remains the same, we can conclude that the new equilibrium:
Possible Answers: a. Price must fall but market quantity is indeterminate.    b. Quantity must increase but market price is indeterminate.   c. Price must increase but market quantity is indeterminate.   d. Quantity must decrease but market price is indeterminate.   e. Price must increase and Quantity must increase.     f.   Price must increase and quantity must decrease.

Please show work on how you solved the questions.

How did the tactics, goals, and/or strategies of the Civil Rights movement shift over the course of the early 1960s? what obstacles did these civil rights organizations confront? How did Martin Luther King Jr and others defend the policy of direct nonviolent confrontation and action?

300 words

You are planning to estimate a short- run production function for your firm, and you have collected the following data on labor usage (L) and output (Q):

a. Please key in the data into MS Excel for regression analysis. Estimate your firm’s
short-run production function. Do the parameter estimates have the appropriate algebraic
signs? Are they statistically significant at the 5 percent level?
b. At what point do you estimate marginal product (MP) begins to fall?
c. Calculate estimates of average products (AP) and marginal products (MP) when the
firm employs 20 workers.
d. When the firm employs 20 workers, is short-run marginal cost (MC) rising or falling?
How can you tell?

Jack and Kate both care about the poor. A €10 reduction in poverty generates benefits of €7.50 for both Jack and Kate. Assume that Jack and Kate can make a charity donation of a maximum of €10 each if they so wish.

(i) Using a pay-off matrix outline and explain the four possible pay-offs.

(ii) Assuming both Jack and Kate have an incentive to free-ride on the giving of others how much will each of them contribute to poverty alleviation? Explain, using your pay-off matrix. (iii) (ii)Using your pay-off matrix explain how compelling both Jack and Kate to give €10 each through an income tax system could benefit both of them and lead to a Pareto improvement.

How does the Washington Consensus differ from the Santiago Consensus? What economic benefits might a developing country gain by reducing corruption? Discuss only economic benefits and provide examples from specific developing countries.

Given your answers to the empirical section of this problem set (the new policies are Fed cuts rate to zero, launches more bond purchases in historic moves to fight coronavirus), what should we expect to see with aggregate output in the U.S.? With unemployment? Inflation? Illustrate your answers using a graph.

Describe how the U.S. economy would go back to its medium run equilibrium once COVID-19 is controlled. Illustrate your answer using a graph

Explain the factors that affect the firm's total cost, and explain the behaviour of a typical firms costs in the short run and long run. In addition, what determines the behaviour of a typical firm's costs in the short run and long run.

Since both taxes and subsidies create a deadweight loss to society, why are they used to correct negative and positive externalities? Ensure to explain whether society is better off or worse off and why.

How do free competitive markets maximize social welfare? In addition, what are market failures and how do they affect social welfare?

Consider a market for a homogeneous good with a demand curve P = 100 − Q. Initially, there are three firms in the market. All of them have constant marginal costs and incur no fixed costs. The marginal cost for firms 1 and 2 is 20, while the marginal cost for firm 3 is 40. Assume now that firms 2 and 3 merge.

a. Calculate the post-merger Cournot equilibrium quantities.
b. Calculate the post-merger Cournot market quantity and price.
c. Calculate the post-merger firm profits.
d. Calculate the post-merger HHI.
e. Calculate the post-merger market-wide Lerner index.
f. Calculate the post-merger consumer surplus.
g. Calculate the post-merger total surplus (firm profits plus consumer surplus)