Microeconomics

Chapter 15 – Mankiw SOLUTIONS TO TEXT PROBLEMS: Quick Quizzes 1. A market might have a monopoly because: (1) a key resource is owned by a single firm; (2) the government gives a single firm the exclusive right to produce some good; or (3) the costs of production make a single producer more efficient than a large number of producers. Examples of monopolies include: (1) the water producer in a small town, who owns a key resource, the one well in town; (2) a pharmaceutical company that is given a patent

6-3 A bank in a medium sized Midwestern city, Firm X, currently charges $1 per transaction at it’s ATM’s. To determine whether to raise price, the bank managers experimented with a number of higher prices(in 25-cent increments) at selected ATM’s. The marginal cost of an ATM transaction is $0.50. ATM Fee USAGE $ 2.00 1000 $ 1.75 1500 $ 1.50 2000 $ 1.25 2500 $ 1.00 3000 What ATM fee should the bank charge? When you say "marginal cost", we have to assume you mean marginal for

Q1: explicit costs and implicit costs concepts Explicit Cost Explicit cost is defined as the direct payment which is supposed to be made to others while running business. This includes the wages, rents or materials which are due in the contract. The explicit cost is the expense done in business which can easily be identified and accounted for in the business at any stage. The explicit cost represents the out flows of cash in clear and obvious terms. When any out flow of credit occurs in a business

Homework #2 – Solutions 1. Union A wants to represent workers in a firm that would hire 20,000 workers if the wage rate is $12 and would hire 10,000 workers if the wage rate is $15. Union B wants to represent workers in a firm that would hire 30,000 workers if the wage is $20 and would hire 33,000 workers if the wage is $15. Which union is likely to organize? The union will be more likely to attract the workers’ support when the elasticity of labor demand (in absolute value) is small. The elasticity

INTRODUCTION Fiji is categorized as one of the five Pacific Island countries (PICs) with the others being Papua New Guinea, the Solomon Islands, Tonga and Vanuatu. After attaining her independence, Fiji concentrated on her agricultural sector, specifically, sugar cane production and exportation. At the same time, the successive governments adopted an import substitution policy but later on, after the IMF intervention, she pursued an export led economic growth policy (Gani & Prasad, 2007). She started

The aim of this assignment is to analyse a selected yield/revenue management enterprise and to use the knowledge of revenue management in hospitality industry to develop an appropriate case study by applying appropriate yield management theory and concepts. In order to present it as a business report I will explore the applications of revenue management techniques and strategies in hotel revenue management operations and how it is used in order to maximise the revenue from the limited number of products

MANAGERIAL ECONOMICS MANDIP SINGH SETHI K1300050 TABLE OF CONTENTS INTRODUCTION…………………………………………………………………………………………………..3 TYPES OF DISECONOMIES………………………………………………………………………….5 DECENTRALIZATION…………………………………………………………………………………6 CONCLUSION……………………………………………………………………………………………..7 REFERENCE……………………………………………………………………………………………….8 What are managerial diseconomies of scale and what, if anything, can be done about this phenomenon? Decreasing

Mission Statement - At 180 Investments our mission is to use our creative design talents and investment knowledge to breathe new life into Colorado communities through building a portfolio of affordable rental properties and providing renovated and updated homes to consumers for purchase. We have often found that communities in the rental sector become outdated and cookie cutter, leaving the renter with a sense that their home is temporary. We believe that our design, business/investment talent,

Introduction Market structure from an economics perspective is defined as the characteristics of the market that impacts the behavior or way firms operate, which economists use to determine the nature of competition, and pricing tactics of businesses in the market. Within a market, the market structures are distinguished by key features, including the number of sellers, homogeneous or differentiated goods or services produced, pricing power, level of competition, barriers to entering or exit the

1. Introduction Nowadays, with the continuous development of social economy, the traditional industries of economic growth begins to decline, in many countries around the world, cultural industries has become the core of economic activities (Hesmondhalgh,2013). Naisbitt (1996) claims that the industrial culture and the cultural industries are the two major trends of economic restructuring in the future. The media industry as the core of the cultural industries was placed on prime location. It is