Transcribed Image Text from this Question1. The opportunity cost of serving in the army for a year (measured in dollars) for a population of 8 individuals is as follows: A: 60,000 B: 55,000 C: 42,000 D: 35,000 E: 28,000 F: 20,000 G: 18,000 H: 15,000 Suppose we need an army of four people and we have a draft, so that the selection is made randomly. Suppose C, G, B and E are drafted. What is the total opportunity cost of this army? Now suppose, as was true in some northern states in the Civil War, that if you are selected, you may either serve or find a substitute. Draw demand and supply curves for the market for substitutes and find the equilibrium price range, explaining why it is an equilibrium. Who exactly will serve under these conditions? How would you answer change if A, B, C and H were drafted ? Graph Supply and Demand schedules and identify the equilibrium. What are the efficiency advantages of allowing people to buy substitutes? Do you think it is a good idea? What considerations other than efficiency matter? Finally, suppose the government replaces the draft with a volunteer army, so that the government must pay the market equilibrium wage to hire a soldier. Draw the supply curve for soldiers. Since the government will pay whatever it has to to get 4 soldiers, the demand curve will simply be a vertical line at the quantity 4, i.e., the government wants 4 soldiers at every price. Identify the equilibrium price range. Compare the outcome here to the outcome of a draft with substitutes allowed that you found above. What do you find? If you had non-efficiency objections to the idea of allowing people to buy substitutes, do you have the same objections to the volunteer army?
1. The Market For Subcompact Cars Is Considered Perfectly Competitive. Assume These Cars Currently
Transcribed Image Text from this Question1. The market for subcompact cars is considered perfectly competitive. Assume these cars currently sell for P= $12,000 and that the following total cost relationship exists for the market: TC = 924,160 4640Q 100? a. Determine the quantity of cars a firm should produce to maximize profits. Also, calculate profits. b. Considering your results in part a, will firms enter or exit the market? How will prices and profits be affected? c. List the market characteristics for perfect competition. d. How do firm profits vary in the short-run versus long-run in perfect competition?
This Question Is About Managerial Economics(especially About Creating And Capturing Value). Read The Following
This question is about managerial economics(especially about creating and capturing value). Read the following question and answer the following two questions. Conventional wisdom holds that to succeed in electronic commerce, you have to get in early. But in late 1999, Walmart decided to challenge that most sacred of web rules. After several years of tinkering with its website, watching while others broke new Internet ground, the retailing giant was ready to flex some cyber muscle. Up to that point, Walmart.com had realized modest success online, ranking 43rd among Internet shopping sites. It trailed web pioneers like eBay and Buy.com. In May 1999, Amazon.com greeted almost 10 million online visitors; Walmart.com saw only 801,000. For 1999, analysts expected Walmart’s e-commerce activities to produce sales of less than $50 million out of the company’s total sales of $157 billion. Walmart faced increasing direct competition from Amazon.com. In July 1999, Amazon announced its expansion from books, music, and videos into toys and consumer electronics. Walmart already was a powerhouse in these product categories through its traditional stores. It announced that it would offer products from all 25 categories carried in a typical Walmart discount store. Moreover, it expected to offer a broader array of higher-priced items than its traditional stores—for instance, DVD players and digital cameras. It also enabled customers to return products ordered online to any of Walmart’s 2,451 U.S. discount stores. Like Amazon, it planned to provide tailored online specials to match the shopping habits of its repeat customers. The company announced plans to expand its online store offerings before the end of 1999 to match more closely the breadth of its traditional outlets. To facilitate this expansion, Walmart penned deals with Fingerhut Business Services and Books-a-Million. Both had expertise in distributing individual orders directly to customers’ homes—quite a different set of skills from bulk shipments, which had been Walmart’s forte. Demographic shifts occurring in cyberspace offered the potential to help Walmart. Back in 1999 Jupiter Communication projected e-retailing to grow from approximately $12 billion in 1999 to an estimated $41 billion in 2002. Much of this expansion would be concentrated in Walmart’s existing lower- and middle-class customer base. Jupiter analyst Kenneth R. Gasser noted, “Internet users are increasingly coming to resemble the population at large.” By 2005,Walmart.com had logged $1 billion of Internet sales. However, the world’s largest retailer only ranked about 13th in Internet sales while Amazon.com had sales of over $10 billion. About 500 million total visitors clicked on Walmart.com in 2005, and the company predicted this to increase to 700 million in 2006. But, its online sales still only accounted for about 1 percent of Walmart’s annual sales. In January 2007, Walmart.com launched Soundcheck, an original series of musical performances that feature punk pop and rock bands to increase its digital music offerings. In March 2007, Walmart.com announced “Site to Store” where Walmart.com shoppers can purchase online and have orders delivered to their local store for free. By July, Site to Store sales more than doubled since its March rollout, and about 90 percent of participating stores had at least one Site to Store order within the first 48 hours of service activation. In January 2008, only 11 months after initiating its movie download service, Walmart.com quietly dropped this service because HewlettPackard Co. stopped providing the application that allowed shoppers to purchase and download videos such as movies and TV shows. Placing yourself back in 1999, answer the following questions in a well-developed discussion: 1) What do you think the potential impact of Walmart.com will be on the company’s efforts to expand internationally? 2) In November 2007, Walmart.com announced that it wants to be “the most visited, most valued online retail site.“Suppose you were hired by an outside consulting firm to evaluate Walmart.com’s potential to achieve this goal. Write a short report listing those factors that will enhance and those factors that will impede Walmart.com’s ability to achieve the goal of “the most visited, most valued online retail site.”
100Y 0-300 Respond To The Following Questi The Equilibrium Level Of Income (Y) Is*
Transcribed Image Text from this Question100Y 0-300 Respond to the following questi The equilibrium level of income (Y) is* Y=5,000 Y=6,000 Y=1,000 Y=7,000 If autonomous investment increases by 200, by how much aggregate expenditure (AE) is going to change? * 2,000 200 0 2,222.22 222.22 The equation of total expenditure (AE) function is AE= 0.9Y 100 AE=0.1Y500 AE=0,9Y 700 AE=Y 600 Suppose that potential output is $4,000. What is the state of the economy? Recession Inflation Stagflation Contraction The consumption function is * C=-100-0.18 C=100 0.9Y C=-100 0.9Y O C=100 0.17
2. A Company Successfully Introduced A New Ultra High Definition Television. This Recent Innovation
Economics Assignment Writing ServiceTranscribed Image Text from this Question2. A company successfully introduced a new ultra high definition television. This recent innovation has given the company a monopoly position in the market. However, entry by a large number of competitors is expected within a few years. Assume the following inverse demand and total cost relationships exist for the market: P=2,100 – TC = 16,200 100Q Q2 a. Calculate the quantity that maximizes profits for the monopoly firm. Also, determine the price and profits. — b. Now assume competitors enter the market causing perfect competition. Calculate the quantity that maximizes profits in perfect competition. Also, determine the price and profits. c. List the market characteristics for monopoly. d. Briefly explain how profit maximizing quantities, prices, and profits compare in perfect competition versus monopoly.
Consider A Country, Home, With A Perfectly Competitive Doughnut Market Where Inverse Domestic Demand
Consider a country, Home, with a perfectly competitive doughnut market where inverse domestic demand and supply functions are given by P =1000−QD and P = 200 QS , respectively. Home’s inverse export supply function is given by P = 600 1/2QX , where QX =QS −QD . To begin, assume that Home is small so that the Foreign inverse import demand function is perfectly elastic at P = 800 . Show transcribed image text
Which Of The Following Could Cause A Supply Shock In An Economy, Leading To
Which of the following could cause a supply shock in an economy, leading to a leftward (upward) shift in the short-run aggregate supply curve? Select one: a. An increase in the size of the labour force. b. A rise in the price of important production inputs. c. A decrease in aggregate demand caused by a rise in personal income taxes. d. An increase in the demand for a country’s exports.
The Small Country Of Hapolonia Applies Import Tariffs Of T = 100 Against Canadian
The small country of Hapolonia applies import tariffs of t = 100 against Canadian and American goods. The US can export as much as Hapolonia wants at a (before-tariff) price of P = 400 , but Canada, a much smaller country can export according to the (before-tariff) inverse export supply function, P = 200 QS . Hapolonian inverse import demand is given by P =1000−QD . Show transcribed image text
When The Demand For A Product Is Price Elastic, A Rise In Its Price
When the demand for a product is price elastic, a rise in its price causes total revenue to: Select one: a. fall because quantity sold remains the same and thus total revenue falls. b. fall because the higher price per product is not enough to offset the decrease in revenue from the fall in quantity sold. c. rise because the higher price per product will more than offset the fall in revenue due to the decrease in quantity sold. d. fall because the quantity sold will decrease, therefore total revenue falls.
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