As it appears in the course syllabus, you should prepare for…
As it appears in the course syllabus, you should prepare for each exam as though it is closed book examination in the classroom. Please confirm your agreement to these statements. Violation of these statements is considered academic dishonesty and will result in a failing grade in Exam #3. I recognize the importance of personal integrity in all aspects of life and work. I commit myself to complete this exam in a fair, honest, respectful, responsible, and trustworthy manner. I will complete the exam as if the professor was watching in the classroom. I will act according to the professor’s instructions (closed book/notes examination). I will neither give nor receive any aid or assistance. All exam answers will be my own. I will not leave the exam before submitting it as I will not be able to re-enter this exam after leaving (all points of the remaining unanswered questions will be lost). I know that the integrity of this exam and this class is up to me, and I pledge not to take any action that would break the trust of my classmates or professor, or undermine the fairness of this class. I have read these statements and [answer1]
Read DetailsWe’ll look at a capital market now. Say that the relationsh…
We’ll look at a capital market now. Say that the relationship between the quantity of capital supplied and the interest rate is described by the equation qS = 8 + 100r, while quantity demanded is described by the equation qD = 20 – 100r. In equilibrium, the interest rate is r0* = [r0], rounded to two decimal places. (Don’t include a leading zero here — for example, input .09 instead of 0.09). The amount of capital lent is q0* = [q0]. The federal government decides that interest rates are too high, and they impose an usury law. Rates may be no higher than .04. Does supply or demand dictate the amount of capital lent now? [supply]. (Type either “supply” or “demand” without the quotes). The amount of capital now lent is q1* = [q1].
Read DetailsIn this problem, we analyze production planning in two diffe…
In this problem, we analyze production planning in two different types of widget markets. In one city, widget production is split across many different manufacturers: these firms are in perfect competition with one another. Here, marginal revenue per widget is constant at $4 (displayed on the left half of the marginal revenue column below). In another city, a single firm handles widget production, and constitutes a monopoly. Marginal revenue is decreasing, as shown in the right half of the marginal revenue column below. # of workers total product marginal revenue 1 12 $4 / $4 2 22 $4 / $4 3 31 $4 / $3 4 38 $4 / $3 5 44 $4 / $2 6 48 $4 / $2 7 51 $4 / $1 8 52 $4 / $1 Let the wage in both markets be $18. How many workers does the firm in perfect competition hire? [wpc]. What are total profits? $[ppc]. How many workers does the monopolist hire? [wm]. What are total profits? $[pm].
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