Economic Final Project Paper

For both scenarios, the firm’s output price and average variable cost are the same. The difference lies in the average total cost. Because the total fixed cost is significantly higher, the average total cost is also significantly higher. It would be highly recommended that the firm shut down if total fixed costs are equal to 3,000,000. In the first scenario, the firm is also losing money. We would recommend laying off ten percent of the staff (5000 employees) to account for the $400,000 loss. However, it is important to note, employee productivity must be increased to 4.44 in order to maintain the 200,000 units per day. This would allow the firm to operate in a break even state.

The economy of Brazil is in the top ten largest economies along with the United States. It is the biggest in Latin America. Actually it is the seventh largest in the world. Brazil has used its newly found economic mechanism to syndicate its outcome in South America and show more of a role in the Global Businesses. The Obama Administration’s National Security Strategy recognizes Brazil as a developing center of effect, and greets the management of the country’s joint and global issues. The United States and Brazil associations mostly have been good in the recent years. But Brazil has other strengthening relations with neighboring countries and expanding ties with nontraditional partners in the South that’s developing.

Imagine that you have decided to open a small ice cream stand on campus called "Ice-Campusades." You are very excited because you love ice cream (delicious!) and this is a fun way for you to apply your business and economics skills! Here is the first month's scenario--you order the same number (and the same variety) of ice creams each day from the ice cream suppliers, and your ice creams are always marked at $1.50 each. However, you notice that there are days when ice creams remain unsold but other days when there are not enough ice creams for the number of customers.

-Mohair farmers have earned a subsidy from the federal government for decades because the mohair farmers can get large payments from the government without taxpayers ever really noticing because the farmers who get the subsidy care a lot about it, while the rest of us taxpayers (paying mere pennies extra in taxes) do not really care. And, “any politician with a preference for job security can calculate that a vote for the mohair subsidy will earn the strong support of the mohair farmers while costing nothing among other voters” (Wheelan 177).

THE UNIVERSITY OF NEW SOUTH WALES SCHOOL OF ECONOMICS ECON1202/2291 QUANTITATIVE MEHODS A FINAL EXAMINATION SESSION 2 2008

When it comes to the supply of money, different actions are taken to assure stability in our country. To ensure we are keeping consistent with the loss in value of currency throughout the years, the Federal Reserve changes either the inflation or the interest rates so that prices will be able to balance the debt amount. With actions like such, there are purposes sought by the Federal Reserve Act set toward “the Board of Governors and the Federal Open Market Committee…: to promote… the goals of maximum employment, stable prices, and moderate long-term interest rates” (Federal Reserve). These are a matter of acts under the monetary policy. However, today in America, we are still suffering from the continuous increase in our national debt, a problem that has been growing since the start of the new century.

You have been working as an economic consultant, and you have seen a significant number of firms needing outside help to assist in business policy and formulation. Because of your strong reputation, you have just been hired as a consultant for one of the following organizations:

Edgar, my cousin, is always thinking of the next business idea. His next business idea includes buying to gas stations. He believes that both gas stations would be profitable and allow revenue for him to increase. After recently reading an article named “$4-a-Gallon Gas Fueling Fears for Recovery” I decide to research the market in terms of supply and demand, elasticity, costs of production, pricing, and normal or economic profit or loss. In order to help my cousin Edgar I would like to provide him with the most informed advice possible.

1.Consider the following entry game.  Here, firm B is an existing firm in the market, and firm A is a potential entrant.  Firm A must decide whether to enter the market (play "enter") or stay out of the market (play "not enter").  If firm A decides to enter the market, firm B must decide whether to engage in a price war (play "hard"), or not (play "soft").  By playing "hard", firm B ensures that firm A makes a loss of $1 million, but firm B only makes $1 million in profits.  On the other hand, if firm B plays "soft", the new entrant takes half of the market, and each firm earns profits of $5 million.  If firm A stays out, it earns zero while firm B earns $10 million. Which of the following are Nash equilibrium strategies?

What is the effect on the equilibrium price and equilibrium quantity of orange juice if the price of apple juice decreases and the wage rate paid to orange grove workers increases?

Your paper should be between 1750 and 2500 words, in APA format and structured as follows:

In business it is essential for owners to consider important factors when mapping out their business objectives. Economics used as a tool to solve coordination problems. They include what and how much product to produce, how to produce their product, and for whom they are producing. In order to effectively answer these questions, economics is used. Colander (2006) describes economics as “the study of how human beings coordinate their wants and desires, given the decision-making mechanisms, social customs, and political realities of the society” (p. 4). The foundation of economics is based on several factors that assist in understanding an economy.

This research topic is significant to the current property market in Singapore and its sudden increased demand for houses despite the economic downturn, exploring deeper as to whether the government policies were the real influential causes to this boom in property demand. It has relevance to the economic concepts of demand and supply, elasticity, inflation and monopolistic competition. This topic is worthy of investigation because it is a hot media topic in Singapore, and is widely debated in the country because it’s the most expensive household asset.[2]

In the United States, minimum wage has remained at a low number for several years. Minimum wage is defined as the lowest possible income that an employer can legally pay an employee. This ensures that all people are fairly paid and not defrauded by companies or businesses. Minimum wage is considered a price floor and the minimum wage laws determine the lowest price possible that any employer must pay for labor. In an economic model, the quantity of supplied is greater than the quantity demanded and the minimum wage is above equilibrium price and quantity. Minimum wage prevents labor supplied and labor demanded from moving

Gross Domestic Product (or known as GDP), is defined as, “aggregate output as the dollar value of all final goods and services produced within the borders of a country during a specific period of time, typically a year” (McConnell, Brue, & Flynn, 2012). This measures the value of the output in monetary terms, and you can check current trends of the GDP by taking a look at the Bureau of Economic Analysis website. Today, we are taking a look at the “Release Highlights” link to check the most current trends within the GDP.