For this question, the supply and demand equations are the same as initially provided in question 1: w = 10 + 0.2QS for supply and w = 40 – 0.2QD for demand.

a. (4 points) Suppose a wealthy businessman, Jeff Bozos, strategically buys all the local clown firms and becomes the only person in town hiring clowns. Bozos’ firm has a marginal cost of hiring determined by the equation: MC = 10 + 0.4Q. Assume there is no minimum wage in the market. i. Determine the number of clowns hired and the wage in this monopsony market. ii. What is the value of the marginal product of the last worker hired? What is the reservation wage of the next person that is not hired. Explain why this person is not hired. iii. Briefly discuss why we expect market outcomes to differ based on the level of competition in the labor market.

b. (4 points) Draw a graph depicting the labor market situation in part a and label the areas of firm surplus and worker surplus. Solve for the values of firm surplus, worker surplus, and total surplus. Discuss how the outcomes differ in the monopsony and competitive markets. How inefficient is the market power scenario?

c. (4 points) Consider the impacts of the minimum wage from question 1, part c. In that case we looked at how a minimum wage affects a competitive market. Compare the expected changes in wage and quantity of workers hired based on the level of labor market competition. How would firm surplus, worker surplus, and total surplus in the monopsony market change with the implementation of a $28 minimum wage? Discuss why the impacts of the minimum wage differ based on the level of market power.

Your professor is going on vacation. He has narrowed down a list of potential hotels, but he is still overwhelmed by the data. He loves great food and wants to do all the activities at the resort.

1. Develop two unique ways to display the data (two unique types of charts) to show him where he should stay.

2. Recommend the best way to present the data. Write a narrative summary of what hotel you recommend based on the data visualization and the tradeoffs that you observe.

Three farmers (Farms A, B, and C) have offered their land for sale for business development.  Each parcel of land is approximately 1,000 acres and all the farms are located within the same region.  The economic development committee in your small town has asked you to do some research on the farmer’s land before negotiations begin so the committee will know what to expect in advance as far as offering fair compensation.  The farmers have made last year’s financial records available for their farms (they all grew soybeans) and your job is to assess the fertility of each farmer’s land.  Assume each farmer uses current best practices regarding input costs.

1. Use the farm records below to rank the farmers’ land with either a “top”, “medium” or “low” compensation ranking so that each farm receives a ranking.  Note that this approach will follow the Ricardo theory of land value.  (15 Points)

Farm A:

Average market price for the crops: $10.50/bushel

Average Yield: 34 bushel/acre

Average Production Cost per Acre: $162

Rank:

Farm B:

Average market price for the crops: $10.50/bushel

Average Yield: 38 bushel/acre

Average Production Cost per Acre: $132

Rank:

Farm C:

Average market price for the crops: $10.50/bushel

Average Yield: 41 bushel/acre

Average Production Cost per Acre: $157

Rank:

2. Do you think that fertility alone should explain the value of land or are there other factors at play that should go into the compensation offer?  Why or why not?  (10 points)

The govt of bigtown is concerned about its revenues. It has increased it tax rate from 2.2% to 2.8% fr companies with net business income exceeding $2M while at the same time reducing the rate from 2.2% to 1.9% for companies with net business income between $1M and $2M. Companies with less than $1M net business income are not taxed. Requirements: For each of the following 4 situations: a, determine total projected govt revenues before and after the tax increase. b, explain in couple of sentences whether and why you consider this good or bad tax policy. Situation 1: The total amount of net taxable business income for companies with income exceeding $2M remains static at $50M and net taxable income for companies with income between $1M and $2M remains static at $100M for the entire town. Situation 2: total amount for the net taxable business income decreases from $ 50M to $48Mfor companies with income exceeding $2M due to business moving to a different jurisdiction. The net taxable income for companies with income between $1M and $2M remains static at $100M. Situation 3: the total amount of net taxable income for businesses with income exceeding $2Mdecreases from $50M to $45M ue to bsiness moving to different jurisdiction. However, total taxable income for companies with income between $1M and $2M increased from $100M to $110M. Situation 4: total amount of net taxable business income for businesses with income exceeding $2M decreases from $50M to $47M due to business moving in different jurisdiction. However, total taxable income for companies with income between $1M to $2M increased from $100M to $120M.

5.3 Julie’s Rent-or-Buy Decision

Julie Brown is in her late 20s. She is renting an apartment in the fashionable part of town for $1,200 a month. After much thought, she’s seriously considering buying a condominium for $175,000. She intends to put 20 percent down and expects that closing costs will amount to another $5,000; a commercial bank has agreed to lend her money at the fixed rate of 6 percent on a 15-year mortgage. Julie would have to pay an annual condominium owner’s insurance premium of $600 and property taxes of $1,200 a year (she’s now paying renter’s insurance of $550 per year). In addition, she estimates that annual maintenance expenses will be about 0.5 percent of the price of the condo (which includes a $30 monthly fee to the property owners’ association). Julie’s income puts her in the 25 percent tax bracket (she itemizes her deductions on her tax returns), and she earns an after-tax rate of return on her investments of around 4 percent.

Critical Thinking Questions

1. Given the information provided, use Worksheet 5.2 to evaluate and compare Julie’s alternatives of remaining in the apartment or purchasing the condo.

2. Working with a friend who is a realtor, Julie has learned that condos like the one that she’s thinking of buying are appreciating in value at the rate of 3.5 percent a year and are expected to continue doing so. Would such information affect the rent-or-buy decision made in Question 1? Explain.

3. Discuss any other factors that should be considered when making a rent-or-buy decision.

4. Which alternative would you recommend for Julie in light of your analysis?

Arts Centre Parking

The following information is required for Questions 5–8:

It is said that "Australia has one of the world's great opera houses; unfortunately, the outside is in Sydney and the inside is in Melbourne."

The opera house in Melbourne is called the Arts Centre, and it has 250 seats. Demand for a typical opera is Q = 400 – 2P, but there is only demand so long as the opera patrons can park for free beneath the Arts Centre. (Opera patrons are lazy, and don't like to walk. They are also selfish, so each patron drives in a car all by himself or herself.)

There are 300 parking places beneath the Arts Centre, and the parking is owned and operated by the Arts Centre. Suppose there are no other uses for the parking places.

What price do you charge for the opera tickets? Answer is $100

For Questions 6–8 assume that the Arts Centre is very conveniently located in the middle of town, so its parking lot is very popular. They can sell as many parking places as they want for $20 per night. However, a Melbourne city ordinance prohibits them from charging more than $20 per night for parking. The system at the Arts Centre is to allow opera patrons to park for free, if they show their ticket, and to allow a certain number of "outside people" (non-opera-attenders) to park at $20 per night.

Q1) How many parking places do they set aside for "outside people", on an opera night?

Q2) Suppose that the very popular opera "Carmen" is showing tonight. Demand for that opera is Q = 600 - 2P.
How many parking places does the Arts Centre allow "outside people" to use, now?

Q3) Now what is the price of an opera ticket?

Shelly is a 4-year-old preschooler who lives with her parents and younger brother. She and her brother attend a local daycare center during the week while their parents are at work. In the evenings she and her brother take a bath and then their parents read to them before bedtime at 8:00 P.M. Shelly's daycare class includes many children her age and she enjoys playing outside with them, Although snack times are planned, Shelly would rather play and does not always finish her beverages,

Shelly's mother calls the pediatric clinic in town and tells the nurse that Shelly has been "running a fever of 101 0 F for the past 2 days' and although her temperature decreases to 37.20 C (990 F) with acetaminophen, it returns to 38.4 C, (1010 F) within 4 hours of each dose. Further, her mother says that Shelly complains that hurts when “I pee-pee." Shelly's mother also has noticed that her daughter seems to be in the bathroom every hour" She makes an appointment to see the pediatrician this afternoon

6.     Shelly's urine culture returns positive for Escherichia coli. 'What is the significance of this finding?

7.     What are the priorities for Shelly's care?

8.     Shelly is prescribed trimethoprim-sulfumethoxazole 60 mg every 12 hours for 10 days. What is this drug and is her prescribed dose safe? Shelly weighs 33 lb.

9.     What are the teaching priorities for Shelly and her mother prior to her discharge from the clinic?

10. Shelly is scheduled for a return visit to the clinic in 2 weeks. What is the purpose of this appointment?

1. In a sample of 350 students selected from a large college of business, 25% are found to be marketing majors. The 25% is a statistic.

True                 False

2. Lily has been keeping track of what she spends to eat out. The last week's expenditures for meals eaten out were $5.69, $5.95, $6.19, $10.91, $7.49, $14.53, and $7.66. What is the mean amount Lily spends on meals?

__________________

3. Monthly rent in dollars for a sample of 10 stores in a small town in South Dakota are as follows: 220, 216, 220, 205, 210, 240, 195, 235, 204, and 250. What is the sample mean?

__________________

4. Suppose that a firm's sales were $2,500,000 four years ago, and sales have grown annually by 25%, 15%, -5%, and 10% since that time. What was the geometric mean growth rate in sales over the past four years?

                                                                                                __________________

5. The data set 10, 20, 30 has the same variance as the data set 100, 200, 300.

True                 False

6. The values for a sample taken from a particular population are listed below. Calculate the standard deviation for the sample values.

9     14     18     21

                                                __________________

7. A basketball player has the following points for seven games: 20, 25, 32, 18, 19, 22, and 30. Compute the coefficient of variation.

__________________

8. According to the Empirical Rule, if the data form a bell shaped normal distribution, approximately ________ % of the observations will be contained within two standard deviations.

9. In a bell-shaped distribution, there is no difference in the values of the mean, median, and mode.

True                 False

10. A data sample has a mean of 107, a median of 122, and a mode of 134. The distribution of the data is positively skewed.

True                 False

2. Enter the following record into the Inventory table using data listed below:

3. The Chevrolet Lumina was sold on 5/20/08 by Bauer for $9,300. Update the INVENTORY table and modify date sold, selling price, and repnumber.
4. Write SQL statements to query the following information
   1. All vehicles available for sale with a selling price less than $6,000, sorted by cost in descending order.
   2. All vehicles sold, grouped by Sales Rep.
   3. All vehicles made by Ford and Toyota.