Problem Set 1 Complete all questions listed below. Clearly label your answers. 1. The receipts and year of release of the five movies with the largest nominal box office revenues‚ along with the CPI data of each year are presented below. Assuming that the receipts for each of the movies were derived during their year of release‚ convert the receipts for each to real dollars for the year 2010 (2010 CPI 218.1). Put the movies in order from largest to smallest real box office receipts. Movies
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Title Certainty of punishment VS. Severity of punishment an experimental investigation Primary Research Question The primary question of this article is based upon the question of what is more useful for deterring crime. Is it a harsher sentence or a greater chance to be caught? There have been multiple papers on this topic‚ but most of the results have been inconclusive. Therefore‚ the researcher would like to shed more light upon human decision making in regards to deterring crime. The key benefits
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Chapter Three Individual Markets: Demand and Supply CHAPTER OVERVIEW This chapter provides a basic‚ but rather detailed introduction to how markets operate as well as an introduction to demand and supply concepts. Both demand and supply are defined and illustrated; determinants of demand and supply are listed and explained. The concept of equilibrium and the effects of changes in demand and supply on equilibrium price and quantity are explained and illustrated. The chapter also includes brief
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Dear Dr. Ducking I am still not able to afford a book at this time. Also I did not make time to use the book in the reading room and the library only had the 3rd edition of the book. So I wrote a summary of the class notes that you had put up on blackboard. Chapter 3 Summaries: Chapter 3 talks about descriptive statistics with numerical measures. These measures consist of location and variability. The measures of locations are mean‚ median‚ mode‚ weighted mean‚ geometric mean
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Important Things To Know * Markup = P-MCP= -1price elasticity of demand * Market demand = firm’s demand for a monopoly ONLY * TR=aQ-bQ2 and MR=a-2bQ * Monopoly output is ALWAYS LESS than competitive output * Colluding leads to the ideal situation (illegal) * MC=WMPL * X=aa+b×MPx or Y=ba+b×MPy * Y = M/Py – (Px/Py)X * Isocost Line: C(Q)=wL+rK | Variation: K=TCr-wrL | Slope: -(w/r) * Isoquant Slope: -(MPL/MPK) | MPLMPK=aKbL=∆K∆L * Optimal cost-minimization:
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Economics 500 – Problem Set #3 Consider a firm producing an output Q using the two inputs “labor” (L) and “capital” (K) according to the production function Q = K.5L.5 (i.e.‚ the amount of output produced Q is equal to the square root of K times the square root of L). Suppose that the firm is in a short-run situation in which K is fixed at one unit (K = 1) but labor is variable. Suppose that the user cost of capital‚ r‚ is $48 for each unit of K and that the wage rate‚ w‚ the cost of one unit
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1. Discuss how the two cases in this chapter illustrate the major theme of this text: Changes in the macro environment affect individual firms and industries through the microeconomic factors of demand‚ production‚ cost‚ and profitability. Drawing on current business publications‚ find some updated facts for each case that support this theme. In the Farnham text‚ “both the cases of McDonald’s in China and Wal-Mart in Mexico show how the interplay of microeconomic and macroeconomic factors influences
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Chapter 18 Optimization Techniques Winter 2014 Agenda… 1) Functional Relationship 2) Marginal Analysis 3) Concept of a Derivative; Rules of Differentiation 4) The Marginal Cost = Marginal Revenue Rule 5) Constrained Optimization Functional relationships How an Economic Relationship is Expressed? By a Table‚ a Graph‚ or an Equation An Example of Functional Relationships (Table) CHERRY CORPORATION DAILY SALES 150 100 50 0 PER UNIT PRICE 10 20 30 40
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Week 1 Quiz (Chapters 1 & 2) Return to Assessment List Part 1 of 1 - 100.0 Points Question 1 of 10 10.0 Points The branch of economics that examines the impact of choices on aggregates in the economy is: A.positive economics. B.normative economics. Correct C.macroeconomics. D.microeconomics. Answer Key: C Question 2 of 10 10.0 Points When we are forced to make choices we are facing the concept of: A.ceteris paribus. B.free goods. Correct C.scarcity. D.the margin
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Economics 1103 080 - Principles of Macroeconomics PRACTICE Midterm Exam Part A: Multiple Choice (30 marks) Answer the following questions on the scantron sheet. 1. Which of the following goods best meets the definition of scarcity? a) air b) water in the ocean c) water in a city d) wood in a forest 2. When the government attempts to cut the economic pie into more equal slices‚ what happens? a) It is easier to cut the pie‚ and therefore the economy can produce a larger pie. b) The
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