what are the main reasons for the new campaign? How do you recommend they measure results?
In: Economics
The answer should have some critical thinking and class concepts (Corporate Financial Management). Do not exceed 750 words. You are allowed to cite websites and have references. Thanks.
Firms sometimes use the threat of bankruptcy filing to force creditors to renegotiate terms or even as a means of reducing labor costs. Whether or not this move is ethical or proper is often debated. What say you? What does the company expect by doing so?
In: Economics
In: Economics
Let the utility function be given by
u(x1, x2) = √x1 + x2.
Let m be the income of the consumer, P1 and P2 the prices of good 1
and good 2, respectively.
To simplify, normalize the price of good 1, that is P1 = £1.
(a) Write down the budget constraint and illustrate the set of
feasible bundles using a figure.
(b) Suppose that m = £100 and that P2 = £10. Find the optimal
bundle for the consumer. In other words, find the combination of x1
and x2 that maximizes the consumer’s utility when the prices are p2
= £10, p1 = £1 and her income is m = £100.
(c) Suppose still that m = £100 but now the price of good 2 has
increased to p2 = £30. Find the optimal bundle for the consumer. In
other words, find the combination of x1 and x2 that maximizes the
consumer’s utility when the prices are p2 = £30, p1 = £1 and her
income is m = £100.
(d) How can we explain the drastic change in demand for the goods
when the price of good 2 increased from £10 to £30?
In: Economics
Microeconomics
Marginal Productivity and the Law of Diminishing Marginal Returns
You have recently been hired to manage a movie theater. You observe that there are many customers waiting around the concession area to buy snacks. You also observe that there is only one clerk working the counter. This employee has to do everything from get the popcorn going, stocking condiments and supplies, changing the soda canister when the syrup runs out for fountain drinks, helping customers, fill orders, collect cash, and of course, smile at the customers who have waited lengthy periods of time.
You obtain a report that shows the average sales per weekend night are $500 with one clerk. You decide to hire another clerk for the shift and sales increase to $1,000. You add one more clerk, and sales increase to $1,700. Again, you add another clerk, and sales increase to $1,900. Finally you add one more clerk, and sales increase to $2,000.
1. Calculate the marginal product associated with each clerk. Draw a table to do this.
2. At what point did the law of diminishing marginal return become evident?
3. Why did the marginal product increase as more clerks were added initially?
4. Why did the marginal product start to diminish?
In: Economics
Perfect competition and monopoly are the two extremes of market structures.
Post your initial response (of at least 250 words) Be sure to respond to at least two posts from other students or your instructor. Your responses in the discussion board must be well-written according to APA. Finally, be sure to include in your initial post at least one reference using professional and scholarly references. Sources such as The Balance, EconomicsHelp.org, Investopedia, and other help websites are not acceptable).
In: Economics
The day after the U.S. stock market crash of October 19, 1987,
Federal Reserve Board Chairman Alan Greenspan issued the following
statement: “The Federal Reserve, consistent with its
responsibilities as the nation’s central bank, affirmed today its
readiness to serve as a source of liquidity to support the economic
and financial system.” What school of thought may prompt
that statement? That is, which school (or schools) has a
role for active monetary policy?
In: Economics
A number of real world complications that make monetary and fiscal policy more challenging than simple theory would suggest. Given the state of the economy and the causes of that state think back to earlier discussions about the current economy- what should be the appropriate mix of fiscal and monetary policy. Form a Keynesian perspective? From a neoclassical perspective? Which makes the most sense to you? Provide evidence ( include and least one link/citation)to provide support to your conclusion.
In: Economics
In August 2019, Hurricane Dorian wreaked havoc throughout the Caribbean. Dorian was the most powerful tropical hurricane on record to strike the Bahamas, and is regarded as the worst natural disaster in the country's history. Estimates suggest the total damage could cost almost $3 billion dollars. Use the one- period closed-economy macro model to understand the economic effects of this loss in capital. In other words, imagine a decrease in K. For each of the following questions, state how each variable would change, if at all, and provide a brief discussion explaining your answer: (a) Output (b) Marginal product of labour (c) Real wage (d) Consumption (e) Leisure
In: Economics
Choose a human-made, renewable resource which is subject to the Tragedy of the Commons. Has the problem been solved? If so, how? If not, why not?
In: Economics
With the Phase 1 deal being signed, will the U.S. and China continue to work in a positive direction? Why or why not?
In: Economics
Question 7
In Santa Monica, California, it was reported that a “finder’s fee”—an up-front payment of up to $5,000—was being required of prospective tenants seeking to rent special apartments. What is this an example of?
the black market
a price floor
price gouging
a government price ceiling
Question 8
Mesa Petroleum Company built a small park in front of its corporate office. This is an example of __________.
imposing external costs on its shareholders
providing a pure public good
providing external benefits to the community
assuming city responsibilities
Question 9
What is the most frequently cited example of an externality?
service charges
public protest
pollution
sales taxes
Question 10
A negative externality exists when __________.
all costs are taken into account in the demand curve
all costs are taken into account in the supply curve
the market demand curve is not the true demand curve
the marginal social costs are not taken into account in the supply cur
In: Economics
In: Economics
Consider the following data on real GDP per capita in:
Year |
Per Capita Real GDP |
1950 |
14 339 |
1960 |
17 351 |
1970 |
23 790 |
1980 |
30 732 |
1990 |
35 868 |
2000 |
43 288 |
2010 |
46 406 |
2011 |
47 554 |
2012 |
47 741 |
2013 |
48 066 |
2014 |
48 780 |
a) Calculate the percentage growth rates in real GDP per capita in each of the years 2011 through 2014, from the previous year.
b) Now, instead of calculating the annual percentage growth rates in the years 2011 through 2014 directly, use as an approximation
100×logyt-logyt-1
where yt is real per capita GDP in year t. How close does this approximation come to the actual growth rates you calculated in part (a)?
In: Economics
Explain what ‘consumer surplus” and “producer surplus” are , and why they are important concepts
In: Economics