Homework 2 ECO3101 Fall 2022 1. Consider the graph below which illustrates a given firm’s AP and MP curves: a. At what level of output is AVC minimized? Explain your answer. b. When 15 workers are hired, what is the firm’s AVC if w = 300? c. When 15 workers are hired, what is the […]
Category Archives: Economics
How was the ‘Rule of Reason’ interpreted to allow for the expansion of the corporate form of business organization?
Read and respond to the article “The Evolution of the Corporation in the United States by Atkinson, Hake and Paschall. What the authors mean by stabilized scarcity? How was the ‘Rule of Reason’ interpreted to allow for the expansion of the corporate form of business organization?
Discuss some policy options a government could have to intervene in such market and prevent the monopoly creation.
Assignment Questions: Q1. You have been hired as an economic consultant by a price-taking (a perfectly competitive) firm that produces T-shirts. The firm already has a factory, so it is operating in the short-run. The price of T-shirt is $9, the hourly wage is $24, and each T-shirt requires $1 worth of material. The following […]
What happens to consumer and producer surplus when the sale of a good is taxed?
Taxation and International trade Answer the following questions: What happens to consumer and producer surplus when the sale of a good is taxed? How does the change in consumer and producer surplus compare to the tax revenue? Explain How do the elasticities of supply and demand affect the dead weight loss of a tax? Why […]
What is monopoly-Why a monopolist is referred as price maker?
Read the following to prepare for this week: Survey of Economics, Chapter 7: Monopoly and Price Discrimination Video: MIT OpenCourseWare video lecture series, “Monopoly” 9.3 Test your Knowledge (Question): Watch the following video(s), which you can access in the Weekly Media object or by clicking on the link(s) below: and answer the question. : Q1 […]
Why do most investors prefer to hold a diversified portfolio of securities as opposed to placing all of their wealth in a single asset?
Q1: Why do most investors prefer to hold a diversified portfolio of securities as opposed to placing all of their wealth in a single asset? Why do most investors hold diversified portfolios? Q2: Explain the benefits derived from investing in deep discount bonds. Q3: Explain how to manage bond portfolios and what are the portfolio […]
Explain and critically assess the respective theoretical frameworks.
How useful are economic development indicators? A critical reflection. Things to focus on in your assignment: Explain and critically assess the respective theoretical frameworks. Make use of data to demonstrate your findings. Which data is mostly relevant and confirms your analysis/thoughts? Ensure that you use peer reviewed literature and readings/concepts covered in class.
Calculate Real GDP in each of the three years, using 2006 as the base year.
Assignment 2 Questions: Chapter(10 Marks) National income accounting deals with the aggregate measure of the outcome of economic activities. The most common measure of the aggregate production in an economy is Gross Domestic Product (GDP). The table below provides Country’s national income accounting. Use this data to answer the following questions. Transfer Payments $ […]
Why and how are the impacts of monetary and fiscal policies different in a closed economy versus an open economy?
Scenario You have just completed your seven-year term as the chief economic policy advisor responsible for managing the economy of the nation of Econland. You are expected to create a report for the incoming administration. In this outgoing report, you will summarize your macroeconomic policy decisions and the economic outcomes for Econland. The purpose of […]
Develop and display a table that depicts the net cash flows associated with each alternative being compared;
Art’s Rental Equipment provides construction equipment, trailers, tools, etc., on short-term rentals. Historically, the owner (Art) has paid full price at the time of purchase for all the items that he rents out. However, he now wants to consider considering acquiring those items by either by leasing them or paying for them over time. […]
