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Future marginal productivity of capital increases- Microeconomics

Future marginal productivity of capital increases- Microeconomics

For each of the following changes, describe which equilibrium curve (IS, LM or FE) is shifted and in which direction?

Expected inflation increases.

The future marginal productivity of capital increases.

Labor supply decreases.

Expected future income declines

There’s a temporary beneficial supply shock.

The nominal interest rate on money rises.

Chapter 7 – Macroeconomics Eighth Edition (Abel, Bernanke, Croushore)

Determine the products potential success

Determine the products potential success

Imagine you are part of a strategic planning group at a large corporation that is considering developing a new proposed product. The marketing director has asked your team to do a competitive market analysis to determine the product’s potential success. The analysis will focus on your primary competitor in the product’s market.

First paragraph

Any issues or opportunities your organization faces that affect its competitiveness and long-term profitability with regards to your product: This may include but is not limited to the following elements:

Cost Structure

Second Pargraph

Factors affecting fixed costs

Describe the benefits and costs of international trade- Microeconomics

Describe the benefits and costs of international trade- Microeconomics

Your son is graduating from high school and is about to enter the work force. He has developed a strong curiosity about our economic system and how it works. Because you have a good understanding of basic economics, he has asked you to explain several concepts that are essential to an understanding of how the economy works. Your son has asked you to explain the following concepts and ideas:

Absolute and comparative advantage: Explain how these concepts describe the benefits and costs of international trade.
“Invisible hand”: What is it and how does it affect the decision-making process in our economic system?
Circular flow diagram: Include the government sector in your explanation, a description of the roles that each participant plays in the economy, and how the different sectors interact in the markets.
The Production Possibilities model: Provide an example and include a summary of what the model is illustrating and the economic implications for the economy.
Microeconomics and macroeconomics: Explain the differences between the two and why economics is divided into these two subdivisions.

Discuss short and long run costs – Microeconomics

Discuss short and long run costs – Microeconomics

1. Discuss short and long run expenses. For the short run discuss the relationship in cost and production theory and the idea of diminishing returns — what is diminishing returns and how does it shape production and cost curves. Then, discuss the relationship between short run cost curves and long run cost curves. Finally discuss the concept of economics of scale and how long run costs curves shape the economic structure of industries.

2. Define the economic characteristics of the market structures (Perfect Competition, Monopolistic Competition, Oligopoly and Monopoly). Select ONE of the market structures and show how we can predict the short run and long run profit maximizing equilibrium positions with respect to quantity produced, price, total costs, total revenues and profits.

3. How do markets determine the payments to the various factors of production and determine the distribution of income? Explain.

Explain how may differ from a command economic system

Explain how may differ from a command economic system

Q-1 Explain how the market economic system works to answer the fundamental economic questions. Explain how this may differ from a command economic system. Historically, which has worked best and why?

Q-2 Explain how a market economy compensates for a market surplus. What about a market shortage? Why is price driven toward equilibrium? How does the relate to laissez-faire. What are some factors that may cause the market system to not function effectively?

Q-3 Explain a production possibility curve. Differentiate between points on the curve, points outside the curve, and points inside the curve. How does this related to opportunity cost and scarcity?

Q-4 Different products have different demand elasticity–Define elasticity. Heart medication, for example, is inelastic and corn is elastic. Find a product that has not already been selected and describe the price elasticity and income elasticity. How much control might an organization have over pricing based on a product’s elasticity? Discuss which of the elasticity rules you used to determine your answer

Determine profit maximizing output level- Microeconomics

Determine profit maximizing output level- Microeconomics

Suppose you are the CEO of ClipIt, a paper clip producer. Your firm enjoys a patented technology that allows it to make paper clips faster and at a lower cost than your only rival, FastenIt. Clipit uses this advantage to be the first to choose its profit-maximizing output level in the market. The inverse demand function for paper clips is P=500-2Q, ClipIt’s costs are Cc(Qc)=2Qc , and FastenIt’s costs are Cf(Qf)=4Qf.

a.What is ClipIt’s profit-maximizing output level? FastenIt’s?
b.What is the market’s equilibrium price?
c.How much profit does each firm earn?
d.Ignoring antitrust considerations, would it be profitable for your firm to merge with FastenIt? If not, explain why not; if so, put together an offer that would permit you to profitably complete the merger.

What determines the level of income-employment

What determines the level of income-employment

1. Explain what determines the level of income, employment, output and prices in our economy.

2. Do you think current monetary and fiscal policy is working to help the U.S. economy achieve the three economic goals of full employment, economic growth, and stable prices?

3. Describe policies you would recommend to the President of the United States to create more jobs and to stimulate economic growth. Analyze the impact these policies would have on job creation and higher income for our economy.

Apply economic principles to a business decision- Microeconomics

Apply economic principles to a business decision- Microeconomics

The Microeconomic Paper tests your ability to apply economic principles to a business decision. Select onesituation from the items outlined below: A to D.

The following is a list of the specific required information, research, graphs, and math to be included in each answer regardless of the scenario chosen.

1. Demand Determinants:

a. Each individual determinant analyzed for your situation, with examples applicable to your situation (5 points each) and research (3 points each) showing current Demand data or most recent past data, except for the Expectations Determinant in which you need to use data estimating future market conditions.

b. Price Elasticity of Demand facing you in your scenario, including actual calculation of it using the midpoint formula. If you can’t find data, then determine the Price Elasticity from the Characteristics and make up numbers to use. Be sure to identify this if you use this approach. This will help you in deciding the slope of your Demand curve below.

c. Graph the Demand facing your situation. Note that this requires information from the Supply Determinant analysis before deciding how to draw the curve(s), as you may need a separate MR curve.

2. Supply Determinants:

a. Each individual determinant analyzed for your situation, with examples applicable to your situation (5 points each) and research (3 points each) showing current Supply data or most recent past data, except for the Expectations Determinant in which you need to use data estimating future market conditions.

i. You need to be very specific in the Cost of Production Determinant to identify Fixed, Variable, and Marginal Cost in order to derive your Supply curve for the graphing component. You will need to explain and show how Profit Maximization or Loss Minimization output and price are determined. You will need to do the math using actual figures [cited] or your own estimated figures [identified as such] and explain why you expect Short Run Economic or Normal Profits, Acceptable Loss or temporary Shut Down and how you will know which it is.

ii. The Number of Sellers determinant must contain your analysis of the kind of market structure in which your firm or labor service will be sold.

b. Price Elasticity of Supply you have based on the Cost of Production changes as output changes, including actual calculation of it using the midpoint formula. If you can’t find data, then determine the Price Elasticity from the Characteristics and make up numbers to use. Be sure to identify this if you use this approach. This will help you in deciding the slope of your Supply curve.

c. Graph your Supply situation using the numbers from your earlier Cost of Production analysis.

3. Recommendations- what are your recommendations explained by your analysis?

4. Paper presentation- good format, citations, lack of spelling errors, etc.