Show all your work as you go through any calculations. Thank you!

1. Suppose a firm uses labor and capital to produce boat shoes.

(a) (6 points) When presenting the optimization problem for the firm, assume that labor is put on the horizontal axis and capital on the vertical axis. If the marginal technical rate of substitution between labor and capital is currently 8 capital per worker, what does this mean? Interpret the number itself and explain fully.

(b) (4 points) By normal assumptions, what would we expect to happen to the marginal rate of technical substitution along an isoquant as labor is increased?

(c) (5 points) Explain why we expect the answer you described in part b).

Market research for food waste?

Objective and subjective data demonstrating the size and growth potential of the market you will be operating in. Please provide relevant objective and subjective statistics, trends, facts & figures

Two firms set prices in a market with demand curve Q = 6 − p, where p is the lower of the two prices. If firm 1 is the lower priced firm, then it is firm 1 that meets all of the demand; conversely, the same applies to firm 2 if it is the lower priced firm. For example, if firms 1 and 2 post prices equal to 2 and 4 dollars, respectively, then firm 1–as the lower priced firm–meets all of the market demand and, hence, sells 4 units. If the two firms set the same price p, then they each get half of the market, that is, they each get (6−p )/2 . Suppose that prices can only be quoted in dollar units, such as 0, 1, 2, 3, 4, 5, or 6 dollars. Suppose, furthermore, that costs of production are zero for both firms. Finally, suppose that firms want to maximize their own profits.

Show that when we restrict attention to the prices 1,2, and 3 dollars, the (monopoly) price of 3 dollars is a dominated strategy.

How do specialization economies and diminishing marginal returns affect the shape of a firm’s short-run marginal cost curve?  Provide a complete explanation in support of your response.

A construction company needs enough money to purchase a new tractor-trailer in 6 years at a cost of $450,000.

If the company sets aside $175,000 in year 2, $125,000 in year 3, and $75,000 in year 4, how much will the company have to set aside in year 5 to have the money needed in year 6?

Assume investments earn 8% per year compounded semi-annually.

What is the value of the individual cash flow at year = 1?

What semi-annual interest rate do you use to solve for the unknown cash flow in year 5?

What is the numerical value for the amount of funding the company have to set aside in year 5 to have the money needed in year 6?

Stock Frauds:

what went wrong? Penny stocks, also known as micro-cap stocks, nano-cap stocks, small cap stocks, or OTC stocks, are common shares of small public companies that initially trade at low prices per share. It is also a term for inexpensive stocks that subsequently become highly lucrative holdings. However, sometimes, it is too good to be true if some tend to manipulate the market. •

Question: what sort of issues involved, what they would have done differently to prevent the issues in the first place, what is pump and dump strategy, what SEC actions were?

IN THE UNITED STATES, WHAT ARE THE MAJOR LAWS THAT AFFECTED UNION GROWTH, AND WHAT DOES EACH ONE COVER?

please explain the main economic systems in urban place in the context of sustainability.

Provide KSF analysis for any industry of your choice ( but the tyre industry can not be used).

Policy Memo 2 Oneandonly Cable Company

Background: You work for the Public Utility Commission (PUC) in the City of Solo, Utah with a population of 150,000 people. The Oneandonly Cable Company is the only cable company licensed to operate in Solo. Most of Oneandonly’s costs are access fees and maintenance expenses. These fixed costs total $640,000 monthly. The marginal cost of adding another subscriber to the system is $2 per month. Oneandonly’s demand curve can be determined from the following data: Subscription Price (per month) Number of Subscribers (per month) $25 20,000 $20 40,000 $15 60,000 $10 80,000 $5 100,000 $2 112,000 The people in the City of Solo are complaining that their $15/month subscription price Oneandonly is currently charging is too expensive. As an analyst for the Public Utility Commission, you have been asked to consider the following options to address the citizen’s concern:

1. Force average cost pricing on Oneandonly. 2. Force marginal cost pricing on Oneandonly. 3. Leave things as they are. You have been asked to prepare a brief memo for the PUC analyzing these three policy options. Specifically, PUC would like for you to consider the following in your analysis for each policy option.  What is the price of a monthly subscription?  What are the profits or losses Oneandonly is making?  Is Oneandonly likely to stay in business?  Is this the most efficient market solution? Your memo should address each of the impacts requested above and should include a recommendation as to which policy (if any) the PUC should support. In addition, you are welcome to propose another policy if you have one. As the contents of your memo will be used to prepare the PUC for a decision they will need to explain to the public, it is important that this information be presented in a direct, non-technical manner that is accessible to non-economists. As such, the PUC has asked that you limit your analysis to two pages and to limit the use of economic jargon. Be sure to include a table summarizing your results. Since the PUC does have economic training, it is allowable to supplement your two-page memo with additional tables that illustrate your analysis. However, any explanations provided in the memo itself must be presented in a way that allows the PUC to convey the information to others in a nontechnical manner. Hints to get you started:  Expect to make a table with more information, such as TFC, MC, etc., for any supplemental tables you would like to turn in. However, all of this information may not easily understandable for the policy memo (2-page) part, so consider what information to include in your memo table carefully.  I recommend Excel or another spreadsheet software to carry out the calculations.  In class we have been calculating marginal revenue assuming there is one unit change in quantity. The equation for marginal revenue is the change in total revenue divided by the change in quantity

A purely competitive wheat farmer can sell any wheat he grows for $10 per bushel. His five hectares of land show diminishing returns, because some are better suited for wheat production than others. The first hectare can produce 1000 bushels of wheat, the second hectare 900, the third 800, and so on. Fill in the table given below to answer the following questions. How many bushels will each of the farmer’s five hectares produce? How much revenue will each hectare generate? What are the TR and MR for each hectare?

If the marginal cost of planting and harvesting an hectare is $7,000 per hectare for each of the five hectares, how many hectares should the farmer plant and harvest?

_________hectares

Expected

-

utility theory tells us that a risk

-

averse individual would want to be paid

a risk premium to induce

her

to voluntarily accept risk. Or, alternatively, the risk

-

averse individual would have to be offered odds that were in

her

favor in order to

induce h

er

to gamble. Here, “odds” refer to the probability of loss/gain and/or the

magnitude of the loss/gain.

Ms

.

Jane’s

utility function is U(

I

) =

(

10

0

+

I

)

0.

4

5

, where

100 is her initial income

level and

I

is

additional income gained or lost from a gamble. Ms.

Jane

can

choose not to gamble or to gamble.

The gamble involves the roll of a fair dice. If

the number is e

ven Ms.

Jane

wins $100 but if it is odd Ms.

Jane

loses $100.

(i)

Will Ms.

Jane

choose the gamble?

(ii)

In words, briefly describe what would need to change to induce Ms.

Jane

to take the gamble

(

hint

: focus on the characteristics of the gamble not her

preferences).

HOW DO CHANGES IN THE ECONOMY AFFECT THE OBJECTIVES OF UNIONS?