Assume Nebraska and Virginia each have 100 acres of farmland. The following table gives hypothetic… Show more Assume Nebraska and Virginia each have 100 acres of farmland. The following table gives hypothetical figures for yield per acre in the two states: Nebraska Virginia Wheat 8 4 Cotton 6 2 A) • Who has the absolute advantage in the production of cotton? • Who has the comparative advantage in the production of wheat? B) In this exercise, you will find actual points on the combined PPC of the two states. For each of the following values of one good, calculate the maximum amount of the other good that the two countries could produce working together. Wheat Cotton 200 240 680 560 C) In Virginia, what is the marginal rate of transformation between wheat and cotton? (Assume wheat is graphed on the vertical axis.) • Show less

Use the following link in order to view the Fed’s most recent Beige Book ( a pdf version is availab… Show more Use the following link in order to view the Fed’s most recent Beige Book ( a pdf version is available in the right hand menu). http://www.federalreserve.gov/monetarypolicy/beigebook/beigebook201304.htm What is the current macroeconomic situation in the U.S.? What should the Fed do about it? What monetary policy tools should the Fed use to achieve the result(s) you just recommended? • Show less

1. As the prevalence of social media continues to rise, consumers are recognizing ways in which s

Assume Nebraska and Virginia each have 100 acres of farmland. The following table gives… Show more (10 points) Assume Nebraska and Virginia each have 100 acres of farmland. The following table gives hypothetical figures for yield per acre in the two states: Nebraska Virginia Wheat 12 15 Cotton 6 10 A) (4 points) • Who has the absolute advantage in the production of cotton? • Who has the comparative advantage in the production of wheat? B) (4 points) In this exercise, you will find actual points on the combined PPC of the two states. For each of the following values of one good, calculate the maximum amount of the other good that the two countries could produce working together. Wheat Cotton 360 200 1300 1500 C) (2 points) In Virginia, what is the marginal rate of transformation between wheat and cotton? (Assume wheat is graphed on the vertical axis.) • Show less

Suppose that two players are playing the following game. Player A can choose eith… Show more (10 total points) Suppose that two players are playing the following game. Player A can choose either Top or Bottom, and Player B can choose either Left or Right. The payoffs are given in the following table: where the number on the left is the payoff to Player A, and the number on the right is the payoff to Player B. A) (1 point) Does player A have a dominant strategy, and if so what is it? B) (1 point) Does player B have a dominant strategy and if so what is it? C) (4 points) For each of the following say True if the strategy combination is a Nash equilibrium, and False if it is not a Nash equilibrium: i) Player A plays Top and Player B plays Left ii) Player A plays Bottom and Player B plays Left iii) Player A plays Top and Player B plays Right iv) Player A plays Bottom and Player B plays Right D) (2 points) If each player plays her maximin strategy what will be the outcome of the game? (Give your answer in terms of the strategies each player chooses—for example, “Player A plays Bottom and Player B plays Right†E) (2 points) Now suppose the same game is played with the exception that Player A moves first and Player B moves second. Using the backward induction method discussed in the online class notes, what will be the outcome of the game? • Show less

Suppose you are a manager of a firm that produces products X, Y and Z. You know that there are two… Show more Suppose you are a manager of a firm that produces products X, Y and Z. You know that there are two different types of consumers, type 1 and type 2, who value your products differently. You also know that there 10,000 type1 consumers and 50,000 type 2 consumers with the following valuations for the three products: Consumer Type Product X Product Y Product Z 1 $250 $150 $100 2 $200 $75 $250 (a) If you price each product separately (i.e., using a standard pricing strategy), what prices should you charge to maximize revenues and what are the revenues? (b) If you adopt a first-degree price discrimination policy, what prices should you charge to maximize revenues and what are the revenues? (c) If you use a commodity-bundle strategy such that the products are sold as one item (i.e., you market product X, product Y, and product Z together), what price should you charge to maximize revenues and what are the revenues? • Show less

4. A firm (You) has to decide whether or not to enter a market which is serviced by a monopolist. Cu

3. In the following one-shot game, if you advertise and your rival does not, you will make $20 milli

2. (a) Consider a perfectly competitive firm with the following total cost function in the short run

Discuss whether government agencies are given too much, too little, or just the right amount of p… Show more Discuss whether government agencies are given too much, too little, or just the right amount of power to serve American citizens. Give an example or a rationale with your answer. Summarize how this chapter is of value to two of the following individuals: A new business owner of a residential and commercial carpet cleaning service The executive director of a nonprofit organization serving homeless individuals A sales manager of a company making automotive pumps A school superintendent of the largest district in the state • Show less