Essay about Econ 545 Week 2 Assignment

Principles of Macroeconomics Homework 1 Please write down your answers as clearly as possible. 1. Below are some data from the land of milk and honey. Year 2008 2009 2010 Price of Milk $1 $1 $2 Quantity of Milk 100 quarts 200 200 Price of Honey $2 $2 $4 Quantity of Honey 50 quarts 100 100

If the price of cotton increases, then the demand for labor also increases which ultimately drives up slave prices. If cotton prices stay the same but there is an increase in output per worker, then the price of slaves will increase. If the cost to maintain a slave decreases, then the difference will eventually offset once slave prices increases to its equilibrium.

12. Discuss the increase in steel production during the Second Industrial Revolution. Specifically, what technological improvements led to greater mass production? Quantify this increase. List 2 forward linkages from the steel industry.

o Mediterranean agriculture was diverse but experienced very little technological improvement. Suffered from overcropping and overgrazing, then deforestation and soil erosion.

The price of gasoline is definitely driven by the concept of supply and demand. When prices fall, quantity demand will rise, when price rises, quantity demanded will fall. This statement is true in most cases. But gasoline is a necessity to most Americans. The demand for fuel does not decrease when the price increase. Consumers often influence the price of gasoline. Gas prices in the late spring and summer months are the highest during the entire year. These are the periods when consumers drive the most. This is the time when most construction and manufacturing jobs are in operation. Like now, in the winter, gas prices are at the lowest point in a six month period. The six-month gasoline price chart I

3) In which of the following situations would the suppliers have the strongest bargaining power?

a. If no market constraints exist on any of the products, produce as much A

Alternative 2 has the lowest total per a procedure cost. Operating costs of Alternative 1 is $86.15, which is lower than Alternative 2 of $92.15Alternative 2 is higher in operation al cost because there is six dollars in extra costs assessed with travel and set up costs. When the other costs, which include capital and maintance, are incorporated, Alternative 2 becomes the lower cost with an annual cost of$ 251,160 and Alternative 1 is $ 268,260.

Q1) Which of the following is a correct pair of a resource and its opportunity cost?

Option A costs an initial $2 billion and will involve variable costs (labor and material) of $5 per bottle of spirits. Option B costs an initial $4 billion and will involve variable costs (labor and material) of $3 per bottle of spirits. Assuming an annual capital charge equal to 10 percent of the initial costs, what is the average fixed cost at production level of 20,000,000 bottles per year for the

For this discussion, I have chosen three different companies to illustrate the unit cost calculation of each:

c. Suppose the real money supply, Ms/P, equals $2750. Given your answers to part a, find the interest rates and levels of real income at which the money market is in equilibrium. Use these combinations of the interest rate and real income to graph the LM curve, given that the real money supply equals $2750. Label this curve LM0

Question Which of the following applies most generally to supply in the long run? Answer Producers are able to make change in all their factors of production. Average total cost must decline. Producers are only able to make change in their variable factors of production. All original producers will leave the market. Add Question Here

I think that following option A is most suitable because its cost can maximise the profit margin needed for the company in order to be a success.

The least cost technique of producing a given output occurs where the marginal rate of substitution of labour for capital equals the