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What the authors mean by stabilized scarcity? How was the ‘Rule of Reason’ interpreted to allow for the expansion of the corporate form of business organization?

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The Evolution of the Corporation in the United States

Read and respond to the article “The Evolution of the Corporation in the United States by Atkinson, Hake and Paschall. What the authors mean by stabilized scarcity? How was the ‘Rule of Reason’ interpreted to allow for the expansion of the corporate form of business organization?

Graph the AVC and MC curves with Output (Q) on the horizontal axis and Dollars per Unit on the vertical axis. What is relationship between APL and AVC? What is relationship between MPL and MC?

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Micro Economics

  1.  Fill in the following table assuming computers are a fixed input that costs $30 per unit to rent and labor is a variable input that costs $12 per unit:

 

Computers Labor Q APL MPL FC VC Cost MC AFC AVC AC
10 0 0                  
10 1 200                  
10 2     300              
10 3   200                
10 4 650                  
10 5   136                
10 6     20              
  1. Graph the APL and MPL curves with Units of Labor on the horizontal axis and Units of Output per Worker on the vertical axis.
  2. Graph the AVC and MC curves with Output (Q) on the horizontal axis and Dollars per Unit on the vertical axis.
  3. What is relationship between APL and AVC?   What is relationship between MPL and MC?

 

  1. Sketch on one diagram the short run AVC, ATC, and MC curves for a firm with a fixed capital stock and a typical production function as shown in the bottom panel of Figure 8-2 on page 205).
  2. Suppose the town in which this firm is located passed a law requiring every business, no matter what its size, to purchase a $500 business permit.  Which of the curves would be affected by the new law?
  3. Repeat part (a) assuming the wage rate for labor rose instead of a new law.
  4. Repeat again assuming instead that a tax on all capital equipment equal to 5% of its value is enacted.

 

  1. In 1998 the price of energy increased dramatically.  Before the price surge, Kaiser Aluminum (in Spokane) had purchased the rights to buy electricity at a fixed rate.  After the price surge, Kaiser still owned these rights so they were able to buy their electricity at a much lower price than the rest of the city. (Note: these rights can be bought and sold at any time)
  2. What happened to Kaiser’s cost of producing aluminum when the price of electricity went up?  (Remember, they didn’t have to pay the higher price for electricity.)
  3. Imagine there was another aluminum plant, Alcoa, that didn’t have the rights to buy electricity at a low price.  After the price of electricity went up how did production costs for Alcoa compare to production costs for Kaiser?
  4. As it turns out, when the price of electricity was very high Kaiser stopped producing aluminum.  Does this surprise you?  Why or why not?
  5. A firm has two plants, each with different costs of production.

Plant 1: Cost = 100 + 9Q + Q2 (MC=9+2Q)

Plant 2: Cost = Q + 5Q2 (MC=1+10Q)

The firm wants to produce 200 units of the good at the lowest cost.  How much should it produce at each plant?

 

  1. Consider a competitive industry consisting of 100 identical firms each with the following cost schedule:
Output Total Cost
0 300
1 400
2 450
3 510
4 590
5 700
6 840
7 1020
8 1250
9 1540
10 1900

 

Market demand is given by the following schedule:

 

Price: $360 290 230 180 140 110 80

 
Quantity Demanded: 400 500 600 700 800 900 1000

 

  1. Draw the supply curve for an individual firm.  On a separate graph, draw the demand and supply curves for the industry as a whole.  Indicate the equilibrium price and output.  Now draw the individual firm’s demand curve on your first graph and show the firm’s equilibrium, price and output.
  2. Explain why the equilibria found in part (a) are only short-run equilibria.  What will happen to the industry in the long run?  Describe the long-run equilibrium in detail.

 

  1. Suppose w=$6, r=$10, TC=$1200.  Suppose the MRTS = 3K/4L.

 

  1. Graph the Isocost line.
  2. Find and graph the optimal choice of K and L.
  3. On the same graph, redo a) and b) for TC=$1500.
  4. Add the expansion path to your graph.
  5. With TC=$1200, compute the optimal choice of K and L if “r” rises to $15.

 

Write in brief about the firm chosen and explain how the firm is trying to create a monopoly or dominating the market? Elaborate your opinion, why we as a society should worry about a firm trying to create a monopoly?

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Assignment Questions:

 Q1. You have been hired as an economic consultant by a price-taking (a perfectly competitive) firm that produces T-shirts. The firm already has a factory, so it is operating in the short-run. The price of T-shirt is $9, the hourly wage is $24, and each T-shirt requires $1 worth of material. The following table shows the relationship between the number of workers and output of T-shirts.

Workers 10 11 12 13 14 15
Output 5 29 41 47 50 52
Labor cost            
Material cost            
Fixed cost $2 $2 $2 $2 $2 $2
Total cost            
Marginal cost            

 

  1. Fill in the blanks in the table. (3 points)
  2. What is the profit maximizing output? [ students may use marginal approach] (1 points)

Note: For answering question-1 (a) and (b) students are required to show all possible calculations.

Q2. See around you and pick up a firm which is either dominating the market or trying to create monopoly.

  • (a) Write in brief about the firm chosen and explain how the firm is trying to create a monopoly or dominating the market? (2 points)
  • (b) Elaborate your opinion, why we as a society should worry about a firm trying to create a monopoly? (2points)
  • (c) Discuss some policy options a government could have to intervene in such market and prevent the monopoly creation. (2points)

 

What is monopoly? Why a monopolist is referred as price maker? Using marginal principle, explain with help of graph, to maximize profit how price-output relationship is achieved by a monopolist.

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Monopoly and Price Discrimination

Set featured image

Read the following to prepare for this week:

Survey of Economics, Chapter 7: Monopoly and Price Discrimination

Video:

  • MIT OpenCourseWare video lecture series, “Monopoly”

9.3 Test your Knowledge (Question):

Watch the following video(s), which you can access in the Weekly Media object or by clicking on the link(s) below: and answer the question. :

Q1 What is monopoly? Why a monopolist is referred as price maker? Using marginal principle, explain with help of graph, to maximize profit how price-output relationship is achieved by a monopolist.

9.4 Instructions

  • Answer the question in test your knowledge section.
  • Post your answer in the discussion board using the discussion link

 

Why do most investors prefer to hold a diversified portfolio of securities as opposed to placing all of their wealth in a single asset? Why do most investors hold diversified portfolios?

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Micro Economics

Q1: Why do most investors prefer to hold a diversified portfolio of securities as opposed to placing all of their wealth in a single asset?

  1. Why do most investors hold diversified portfolios?

Q2: Explain the benefits derived from investing in deep discount bonds.

Q3: Explain how to manage bond portfolios and what are the portfolio management strategies.

 

Explain and critically assess the respective theoretical frameworks. Make use of data to demonstrate your findings. Which data is mostly relevant and confirms your analysis/thoughts?

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How useful are economic development indicators? A critical reflection.

Things to focus on in your assignment:
 Explain and critically assess the respective theoretical frameworks.
 Make use of data to demonstrate your findings. Which data is mostly relevant and confirms your analysis/thoughts?
 Ensure that you use peer reviewed literature and readings/concepts covered in class.

Your literature review must include seminal works and recent publications in the chosen topic area.The assignment should not exceed 1500 words, must contain a title page, a list of contents and a bibliography. The reference style is Harvard. A guide to Harvard referencing style can be found on the course homepage. The word count has to be given on the front page of the paper. The bibliography is essential and by definition a list of all the works used as sources for the project. Please follow the reference guidance provided and write your paper in 1.5spacing. A written project assessment form can be found on the course home pag

Calculate the rate of inflation for 2007 and 2008 using the GDP deflator as your price index. Assume that 2006 is still the base year. Using the quantities from 2006 for your market basket, and 2006 as your base year, calculate the CPI for 2006, 2007 and 2008.

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Macro Economics

Assignment 2 Questions: Chapter 10 & 11

(10 Marks)

  1. National income accounting deals with the aggregate measure of the outcome of economic activities. The most common measure of the aggregate production in an economy is Gross Domestic Product (GDP). The table below provides Country’s national income accounting. Use this data to answer the following questions.

 

Transfer Payments $ 54
Interest Income $ 186
Depreciation $ 36
Wages $ 67
Gross Private Investment $ 124
Business Profits $ 274
Indirect Business Taxes $ 74
Rental Income $ 75
Net Exports $ 18
Net Foreign Factor Income $ 12
Government Purchases $ 156
Household Consumption $ 304

 

  1. Calculate the GDP by using the Expenditure Approach Method (1Mark)
  2. Calculate the GDP by using the Factor Payment Approach or the Income Approach Method. (1 Mark)

 

Year Price of Pizza Quantity of Pizza Price of Burger Quantity of Burger Price of coffee Quantity of Coffee
2006 $ 4 200 $ 6 125 $ 8 100
2007 $ 6 350 $ 8 200 $ 9 175
2008 $ 7 600 $ 9 350 $ 12 250
  1. Suppose people consume 3 different goods. The following table shows the prices and quantities of each good consumed in 2006, 2007, and 2008.
  2. Calculate nominal GDP in each of the three years. (1.5 Marks)
  3. Calculate Real GDP in each of the three years, using 2006 as the base year. (1.5 Marks)
  4. Calculate the rate of inflation for 2007 and 2008 using the GDP deflator as your price index. Assume that 2006 is still the base year.  (2 Marks)
  5. Using the quantities from 2006 for your market basket, and 2006 as your base year, calculate the CPI for 2006, 2007 and 2008. (2 Marks)
  6. Using the CPI calculate the rate of inflation.(1 Mark)

 

 

Analyze the effect on the economy of Saudi Arabia given two scenarios when there is a dramatically declining world oil price or a dramatically increasing world oil price.

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International Economics

While Saudi Arabia seeks to diversify its economy, the Saudi economy is dominated by the petroleum sector. In addition, the Saudi Arabian Riyal (SAR) is pegged to the U.S. Dollar. For this week’s discussion, answer the following questions:

  • What are the advantages and disadvantages of the pegged exchange rate? Highlighted your answer in yellow .
  • Analyze the effect on the economy of Saudi Arabia (GDP, interest rates, inflation, and trade balance) given two scenarios when there is a dramatically declining world oil price or a dramatically increasing world oil price. Highlight your answer in red, and separated the required two scenarios in blue. Using tables in the analyze is appreciated.

Directions:

  • Your essay is required to be 6 to 7 pages in length, which does not include the title page and reference pages, which are never a part of the content minimum requirements.
  • Support your submission with course material concepts, principles, and theories from the textbook and at least three scholarly, peer-reviewed journal articles. VERY IMPORTANT; highlight your support by underlines. https://www.sciencedirect.com/science/article/pii/… Attached another materials ( Which is the most important ).
  • follow APA style guidelines.

 

Write a 2–3-page paper providing at least 1 example of how government has overstepped biblical principles in some form of economic policy.

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ECONOMICS ANALYSIS ASSIGNMENT INSTRUCTIONS

OVERVIEW
For this assignment, you will write a 2–3-page paper (double-spaced, 1-inch margins) providing  at least 1 example of how government has overstepped biblical principles in some form of  economic policy. Be sure to adhere to the format specified in the Course Style Guidelines  document.

Options include the following topics:
· A specific piece of legislation relating to business regulation or taxation.
· The “party platform” of either the Republican Party or the Democratic Party (or both).
· The role of the Federal Reserve.
· The budget process.
.
INSTRUCTIONS
Follow the below instructions to compose your assignment:
· Length of assignment – 2-3 pages.
· Make sure to include a bibliography page
· Format of assignment – Course Style Guidelines
· At least 2 sources
· Acceptable sources – Scholarly articles published within the last five years, the Bible,  online articles given as assignments, and any other pertinent source that helps the student  answer the assignment prompt.

Note: You may submit your assignment to the Economics Analysis: Draft Submission  Assignment to check your paper for plagiarism. Your assignment will be checked for originality  via the Turnitin plagiarism tool. After reviewing your Turnitin results, make any edits necessary  and submit your Economics Analysis: Final Submission Assignment.

Writes about a business in an industry that faces a less competitive market (oligopoly, monopoly).

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A less competitive market (oligopoly, monopoly)

  • Writes about a business in an industry that faces a less competitive market (oligopoly, monopoly)
  • Where possible, provide key charts and/or tables from well-established sources

– Give selected business an imaginary name. Do not disclose/use names of any real companies or people in your assignments: you can use real place names (towns/ cities), though.