2. One of the leading refrigerator producers has estimated the following demand equation after analyzing 36 regional markets:

Q = + 25,000 – 45P + 20A + 25Pc - 30Ac + 110 I

(12000) (20.2) (14) (9) (48) (50)

R2 = 0.86 F = 28.52

The variables and their assumed values are

Q = Quantity P = Price of the basic Model = 1200 (dollars)

A = Advertising Expenditures = 90 (thousand dollars)

Pc= Average price of the competitor’s product = 1400 (dollars)

Ac= competitor’s advertising expenditures = 80 (thousand dollars)

I = per capita income = 60 (thousand dollars)

a. Compute the elasticities for each variable. On this basis, discuss the relative impact that each variable has on the demand. What implications do these results have for the firm’s marketing, pricing, and production policies?

b. What would be the effect of a 6 unit increase in the competitor’s advertising expenditures?

c. What would be the change in your advertising expenditures to offset your competitor’s strategy?

d. Conduct a t-test for the statistical significance of each variable. Discuss the results of the t-tests in light of the policy implications mentioned.

e. What proportion of the variation in sales is explained by the independent variables in the equation? How confident are you about this answer? Explain conducting an F-test

•U.S. produced John Deere tractor, price $25,000 in t-1 and t-2.

•Italian produced designer shoes, price €350 in t-1 and t-2.

•Dollars per Euro:

•If in t-1 $1.0741: €1 then $1 = € 1/1.0741 In t1, $1 = € 0.931012    

•t-2 $1.1385: €1                                                In t2, $1 = € 0.8783487

1.What is the Euro price of the tractor in t-1?

In t-2?

1.What is the U.S. dollar price of the Italian shoes in t-1?

In t-2?

1.Draw a demand curve for U.S. tractors illustrating the effect of the change in exchange rates. Only draw the demand curve.

2.Draw a demand curve for Italian shoes illustrating the effect of the change in exchange rates. Only draw the demand curve.

3.All else remaining equal, what will happen to Italian GDP?* Why?

4.All else remaining equal, what will happen to U.S. GDP?* Why?

There are millions of unique visitors that consult Wikipedia, the free

online encyclopedia. The contents of the website are written by voluntary

contributors, and rarely does any of the readers make an edit. In 2011,

Wikipedia’s fund-raising campaign showed that only 3% of non-editing readers

donated to this non-profit. So clearly there are millions of readers who free ride

on the efforts of the editors and donors.

a. (5 points) Do you think that the knowledge made available via Wikipedia

is a public good? Evaluate (that is, provide your arguments for or against)

it based on the non-rivalness and the non-excludability features of a

public good.

b. (5 points) If you were to suggest some ways to reduce the free riding, what

would they be? Be specific.

1. Suppose all of a firm's costs are fixed costs.

1. Draw average and marginal costs for such a firm. Remember to label your axes.
2. Why is it unlikely that this industry would be purely competitive?
3. Assume that the firm is a monopolist. Will there still be any dead-weight (welfare) loss? Graphically illustrate the profit maximizing output, price, profits and welfare loss for this firm.

2. Graphically illustrate the results of long-run equilibrium in pure competition and monopolistic competition. How are the results similar? Different? Compare and contrast the outcomes with regards to efficiency and consumer welfare.

in 2/3 paragraph please explain automation reduces the importance of labor cost as a basis for competitive advantage, so can we assume now that the countries with more capital and technology have the competitive advantage?

The U.S. has a shortage of ventilators to treat critically ill coronavirus patients. Based on this article what does the market concentration have to do with this shortage? Explain. Discuss Covidien's purchase of Newport Medical Instruments. (minimum of 10 sentences).

When the Fed sells assets in the open market to individuals and investors:

the statement above is the " question "

Individuals and investors swap a deposit balance for the assets that the Fed is selling.

The amount of central bank reserves on individual's balance sheets increases

Individual's stockholder's equity is reduced.

Individuals and investors swap a real asset balance for the assets that the Fed is buying.

In which cases would an organization benefit from using direct and indirect price discrimination? Does market structure influence the capacity of the firm to use price discrimination?

The city of Selma (like most other cities) contracts with a single garbage collection firm, Alamo Waste Inc., which has been given an exclusive franchise to pick up trash in the city. However, Mr. Foo L. Noone has proposed an alternative scheme. He suggests that the city government should divide the city into several, much smaller areas. Then it should allow numerous small companies that would like to get into the business of collecting trash to competitively bid for garbage collection in these areas. The government would then allow the lowest bidder to service the area.   

      Suppose that the city government has estimated the price residents are willing to pay for various numbers of garbage collections per month and the total costs per resident as shown in the following table.

1. Complete the above table.

2. How much are the fixed costs per month of garbage collection per resident in any given        area?

C.   Given that the current garbage collection firm has a monopoly what is the current number of collections per resident and the price charged residents for each collection? What is the economic profit received from each resident by the monopoly firm. Show your work.

D. If competitive bidding were allowed and a competitive market for garbage collection services developed, what would be the number of collections per month and the price charged per resident per collection? What is the economic profit received from each resident by the competitive firms?

E.   Draw an appropriate graph of your solutions to parts B and C and insert your numbers onto the graph. Based on the above analysis should the city government implement Mr. Noone's proposal? Briefly explain your answer.

1: Given the increase in population in the last 10 years, how do you explain the price decline in commodities?

2: Describe the various ways immigrants can legally enter into the United States.

3: What is President Trump’s healthcare proposal for the 2020 reelection? (6 bullet points) What could he apply from the Singapore healthcare system?

4: Define skill transferability. How does this apply to migrants entering into the United States?

5: Based on the documentary “Living on one dollar” Suppose that Anthony and Rosa came to spend some time in the US. Describe the situation and make a comparison of what they will find in the US as a low-income family vs. what they have in Guatemala?

Your firm is using 300 units of labor and 2000 units of capital to produce 5000 units of output. If you hired an additional unit of labor output would increase by 10 units. An extra unit of capital would add 25 units of output. The wage rate is $10 per hour, and the rental rate is $50.

1. What are the marginal products of labor and capital per dollar?
2. Is your firm producing at the lowest possible cost? How do you know?
3. What should the firm do to minimize the cost of producing 5000 units of output?
4. What would happen to MP_L and MP_K?

You are an economic advisor to the Treasurer of the United States. Congress is considering increasing the sales tax on gasoline by $.03 per gallon. Last year motorists purchased 10 million gallons of gas per month. The demand curve is such that every $.01 increase in price decreases sales by 100,000 gallons per month. You also know that for every $.01 increase in price, producers are willing to provide 50,000 more gallons of gasoline to the market. The legislature has stated that the $.03 tax will increase government revenues by $300,000 per month and raise the price of gasoline by $.03 per gallon. Is this correct? Explain and show your work.

8-

Analyze the case of rise in price of Daraprim using the concept of Elasticity of Demand. Make sure to include the three main factors that affect elasticity of demand and comment on how each factor contributed to the rise in price of Daraprim overnight.