New Semester Started Get 50% OFF Study Help! --h --m --s Claim Now

Question Answers

Textbooks

Find textbooks, questions and answers

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Study Help
Tutors
AI Study Planner NEW
Sell Books

Search
Sign In
Register

study help
business
microeconomics principles applications

Microeconomics 5th Global Edition R. Glenn Hubbard; Anthony Patrick O'Brien - Solutions

[elated to Solved Problem 11.6 on page 415] Suppose that Jill Johnson has to choose between building a smaller restaurant and a larger restaurant. In the following graph, the relationship between costs and output for the smaller restaurant is represented by the curve ATC1, and the relationship
Factories for producing computer chips are called “fabs.”As the semiconductors used in computer chips have become smaller and smaller, the machines necessary to make them have become more and more expensive. According to an article in the Economist magazine:To reach the economies of scale
Why can short-run average cost never be less than longrun average cost for a given level of output?roblems and pplications
Explain how the events listed ina. throughd. would affect the following costs of a firm producing cups:1. Marginal cost 2. Average variable cost 3. Average fixed cost 4. Average total costa. Following the burst of a housing market boom, the cost of renting the warehouse significantly decreases.b.
List the errors in the following graph. Carefully explain why the curves drawn this way are wrong. In other words, why can’t these curves be as they are shown in the graph?
Recently some colleges and private companies have launched free online courses that can be taken by anyone with an Internet connection. The most successful of these“massive open online courses” (MOOCs) have attracted tens of thousands of students. An article in the Economist magazine discussing
In the ancient world, a book could be produced either on a scroll or as a codex, which was made of folded sheets glued together, something like a modern book. One scholar has estimated the following variable costs (in Greek drachmas)of the two methods:Scroll Codex Cost of writing(wage of a
One description of the costs of operating a railroad makes the following observation: “The fixed … expenses which attach to the operation of railroads … are in the nature of a tax upon the business of the road; the smaller the [amount of] business, the larger the tax.” Briefly explain why
(This problem is somewhat advanced.) Using symbols, we can write that the marginal product of labor is equal to ∆Q>∆L. Marginal cost is equal to ∆TC>∆Q. Because fixed costs by definition don’t change, marginal cost is also equal to ∆VC>∆Q. If Jill Johnson’s only variable cost (VC)is
You possess the following information: current output amounts to 150 units and the corresponding total cost is€1,500. Should production increase to 151 units, total cost would rise to €1,515. Is it possible to conclude from the given data that the marginal cost is increasing? Answer using a
You possess the following information: current output of a firm amounts to 150 units and the corresponding total cost is €1,500. Should production of the firm increase to 151 units, total cost would rise to €1,505. Is it sufficient to conclude that the marginal cost is increasing? Answer using
[elated to Solved Problem 11.4 on page 411] Santiago Delgado owns a copier store. He leases two copy machines for which he pays $20 each per day. He cannot increase the number of machines he leases without giving the office machine company six weeks’ notice. He can hire as many workers as he
Briefly explain why the marginal and the average cost curves are U shaped?
[elated to the Chapter opener on page 399] Older oil wells that produce fewer than 10 barrels of oil a day are called “stripper” wells. Suppose that you and a partner own a stripper well that can produce eight barrels of oil per day and you estimate that the marginal cost of producing another
Explain why the marginal cost curve intersects the average total cost curve at the level of output where average total cost is at a minimum.roblems and pplications
What is the difference between the average cost of production and marginal cost of production?
The following table shows the quantity of workers and total output for a local pizza parlor. Answer the following questions based on this table:Quantity of Workers Total Output 0 0 1 5 2 —3 19 4 24 5 28 6 26a. When the owner hires 4 workers, what is average product of labor?b. What is the
Is it possible for a firm to experience a technological change that would increase the marginal product of labor while leaving the average product of labor unchanged?Explain.
Sally looks at her college transcript and says to you, “How is this possible? My grade point average for this semester’s courses is higher than my grade point average for last semester’s courses, but my cumulative grade point average still went down from last semester to this semester.”
[elated to the Making the Connection on page 407]Briefly explain whether you agree with the following argument:Adam Smith’s idea of the gains to firms from the division of labor makes a lot of sense when the good being manufactured is something complex like automobiles or computers, but it
A student looks at the numbers in Table 11.3 on page 405 and draws this conclusion:The marginal product of labor is increasing for the first two workers hired, and then it declines for the next four workers. I guess each of the first two workers must have been hard workers. Then Jill must have had
Use the numbers from problem 3.4 to draw one graph that shows how total output increases with the quantity of workers hired and a second graph that shows the marginal product of labor and the average product of labor.
Fill in the missing values in the following table:Quantity of Workers Total Output Marginal Product of Labor Average Product of Labor 0 0 1 400 2 900 3 1,500 4 1,900 5 2,200 6 2,400 7 2,300
What is the law of diminishing returns? Does it apply in the long run?roblems and pplications
How do specialization and division of labor typically affect the marginal product of labor?
When the DuPont chemical company first attempted to enter the paint business, it was not successful. According to a company report, in one year it “lost nearly $500,000 in actual cash in addition to an expected return on investment of nearly $500,000, which made a total loss of income to the
Suppose Jill Johnson operates her pizza restaurant in a building she owns in the center of the city. Similar buildings in the neighborhood rent for $4,000 per month. Jill is considering selling her building and renting space in the suburbs for $3,000 per month, but she decides not to make the move.
Mr Hajjali, who is the owner of a Japanese restaurant in London, is quantifying the yearly costs of his business. He finds out that he is paying £100,000 for the food ingredients;£80,000 for the wages of the four workers he employs in his restaurant; £200,000 for the rent and the other utilities
Suppose that Bill owns an automobile collision repair shop. The following table shows how the quantity of cars Bill can repair per month depends on the number of workers he hires. Assume that he pays each worker $4,000 per month and his fixed cost is $6,000 per month. Using the information
[elated to the Making the Connection on page 402]The Statistical Abstract of the United States was published for many years by the U.S. Census Bureau. The Abstract provided a summary of business, economic, social, and political statistics. It was available for free online, and a printed copy could
[elated to the Making the Connection on page 402]For Jill Johnson’s pizza restaurant, explain whether each of the following is a fixed cost or a variable cost:a. The payment she makes on her fire insurance policyb. The payment she makes to buy pizza doughc. The wages she pays her workersd. The
[elated to the Making the Connection on page 402]Many firms consider their wage costs to be variable costs.Why, then, do publishers usually consider their wage and salary costs to be fixed costs? Are the costs of utilities always fixed, are they always variable, or can they be both?Briefly explain.
An article in Forbes discussed an estimate that the cost of materials in Apple’s iPhone 5 with 64 gigabytes of memory was $230. Apple was selling the iPhone 5 for $849 (most phone carriers made payments to Apple that reduced the price to consumers to $399). Can we conclude from this information
Define a production function. Explain the relationship between the production function and costs of a firm.roblems and pplications
Abdul, the owner of a vegetarian restaurant in London, just told a friend of his: “Should the vegetarian food business go out of fashion, we could decide to offer Arabic cuisine instead.” Does he refer to the short run or the long run?
[elated to the Making the Connection on page 400]The 7-Eleven chain of convenience stores in Japan reorganized the timing of truck deliveries of food to their stores, as well as the routes the trucks traveled. This reorganization led to a sharp reduction in the number of trucks the company had to
Which of the following are examples of a firm experiencing positive technological change?a. A fall in oil prices leads United Airlines to lower its ticket prices.b. A training program makes a firm’s workers more productive.c. An exercise program makes a firm’s workers more healthy and
Do you think the term “technology” refers to the development of new products alone? Briefly explain your answer.
Does the term “technological change” only refer to the successful application of new scientific discoveries?roblems and pplications
[elated to the Chapter Opener on page 319 and the Making the Connection on page 321] Goodyear manufactures tires in the United States, so you might expect that the firm would benefit from a tariff on imports of Chinese tires. Yet Goodyear actually opposed the Obama administration’s decision to
Briefly explain whether you agree with the following statement: “Japan has always been much more heavily involved in international trade than are most other nations. In fact, today Japan exports a larger fraction of its GDP than Germany, Great Britain, or the United States.”
Briefly explain whether you agree with the following statement: “International trade is more important to the U.S.economy than it is to most other economies.”roblems and pplications
Define informative content of a time series illustrating imports and exports divided by GDP of a country over 50 years?
The current ratio is equal to a firm’s current assets divided by its current liabilities. Use the information in Figure 8A.2 on page 315 to calculate Facebook’s current ratio on December 31, 2012. Investors generally prefer that a firm’s current ratio be greater than 1.5. What problems might
Use the information in the following table on the financial situation of Starbucks Corporation as of December 31, 2012, to prepare a balance sheet for the firm. Be sure to include an entry for stockholders’ equity.Current assets $4,220 million Current liabilities 2,210 million Property and
Use the information in the following table for calendar year 2012 to prepare an income statement for McDonald’s Corporation. Be sure to include entries for operating income and net income.Revenue from company restaurants $18,603 million Revenue from franchised restaurants 8,965 million Cost of
[elated to Solved Problem 8A.1 on page 311] Before the start of the 2000 baseball season, the New York Mets decided they didn’t want Bobby Bonilla playing for them any longer. But Bonilla had a contract with the Mets for the 2000 season that would have obliged the Mets to pay him $5.9 million.
[elated to Solved Problem 8A.1 on page 311] A winner of the Pennsylvania Lottery was given the choice of receiving $18 million at once or $1,440,000 per year for 25 years.a. If the winner had opted for the 25 annual payments, how much in total would she have received?b. At an interest rate of 10
[elated to Solved Problem 8A.1 on page 311] Before the 2013 season, the Los Angeles Angels signed outfielder Josh Hamilton to a contract that would pay him an immediate $10 million signing bonus and the following amounts: $15 million for the 2013 season, $15 million for the 2014 season, $23 million
[elated to Solved Problem 8A.1 on page 311] If the interest rate is 10 percent, what is the present value of a bond that matures in two years, pays $85 one year from now, and pays $1,085 two years from now?
What is the key difference between a firm’s income statement and its balance sheet? What is listed on the left side of a balance sheet? What is listed on the right side?roblems and pplications
An article about corporate fraud on forbes.com stated that“misleading accounting and disclosure practices weaken the integrity of capital markets.” The article noted that using incentive contracts for top managers can create a“‘perverse’ incentive to manipulate stock prices because their
[elated to the Making the Connection on page 302]Jay Ritter, a professor at the University of Florida, was quoted in the Wall Street Journal as saying about Facebook:“It’s entirely possible for a company to have solid growth prospects while its stock is overvalued.”a. What does it mean to say
An article in the Wall Street Journal observes: “Being on the board of directors of a publicly traded company isn’t as much fun as it used to be. You’re tied up in accounting red tape as a result of reforms under the Sarbanes-Oxley Act of 2002 . . . .” Is it possible to put a dollar value
Shortly after the crisis, in July 2010, the Congress of the United States passed the Dodd-Frank Act. List and briefly explain what the objectives of that act were?
The following is from an article in USA Today:In what some call a worldwide corporategovernance movement, shareholders are pushing for stronger corporate-governance laws, teaming with investors from different countries and negotiating behind the scenes with businesses.What is corporate governance?
What was the source of the problems encountered by many financial firms during the crisis of 2007–2009?roblems and pplications
What is the Sarbanes-Oxley Act? Why was it passed?
Think about the balance sheet of a firm. Why is it also known as the “statement of financial position?” Why does the value on the left side of the balance sheet always equal the value of the right side?
Dane decides to give up a job earning $200,000 per year as a corporate lawyer and converts the duplex that he owns into a UFO museum. (He had been renting out the duplex for $20,000 a year.) His direct expenses include $75,000 per year paid to his assistants and $10,000 per year for utilities.Fans
Paolo currently has $100,000 invested in bonds that earn him 10 percent interest per year. He wants to open a pizza restaurant and is considering either selling the bonds and using the $100,000 to start his restaurant or borrowing$100,000 from a bank, which would charge him an annual interest rate
Would a business be expected to survive in the long run if it earned a positive accounting profit but a negative economic profit? Briefly explain.roblems and pplications
[elated to the Making the Connection on page 296]The following table shows information on June 7, 2013 on the stock price of Starbucks Corporation:a. How much did the price of Starbucks’ stock change from the day before?b. Did the Starbucks’ stock price vary much during this day’s trading?c.
[elated to the Making the Connection on page 296]Loans from banks are the most important external source of funds to businesses because most businesses are too small to borrow in financial markets by issuing stocks or bonds.Most investors are reluctant to buy the stocks or bonds of small businesses
[elated to the Don’t Let This Happen to You on page 294] “When a firm sells stocks on primary markets, customers are more trustworthy and the firm has a very reliable source of funds. When firms decide to sell stocks on secondary markets, on the other hand, customers are less reliable.”
The following appeared in an article in the Wall Street Journal about the bond market in high-income (or developed) countries (that is, the United States and countries in Europe) and the emerging-market countries (that is, Latin American and Asian countries):“In the developed markets, it’s been
What effect would the following events be likely to have on the price of Google’s stock?a. A competitor launches a search engine that is better than Google’s.b. The corporate income tax is abolished.c. Google’s board of directors becomes dominated by close friends and relatives of its top
[elated to the Making the Connection on page 292]In 2013, the government of Thailand was suffering large losses on a rice subsidy program introduced to raise the incomes of rice farmers. An article in the Wall Street Journal reported that: “Moody’s Investors Service on Monday warned that losses
[elated to the Chapter Opener on page 285] Were the shares of stock issued as a result of Facebook’s initial public offering (IPO) sold in a primary market or a secondary market? Was the IPO an example of direct finance or indirect finance?
If you deposit $20,000 in a savings account at a bank, you might earn 1 percent interest per year. Someone who borrows $20,000 from a bank to buy a new car might have to pay an interest rate of 6 percent per year on the loan.Knowing this, why don’t you just lend your money directly to the car
A large corporation, where you own a number of shares, recorded extraordinary profits in the last quarter. You expect to receive large dividend payments but do not receive anything. Why?
Is it riskier to buy stocks or bonds? Consider Ukraine’s current economic situation, where foreign financial aid is required to overcome its current debts. Why are some Ukrainian bondholders still worried?Source: Sujata Rao, “Ukraine bond investors remain anxious despite relief rally,”
How do the stock and bond markets provide information to businesses? Why do stock and bond prices change over time?Problems and Applications
Private equity firms, such as Blackstone and Kohlberg Kravis Roberts & Co., search for firms where the managers appear not to be maximizing profits. A private equity firm can buy stock in these firms and have its employees elected to the firms’ boards of directors and may even acquire control of
[elated to Solved Problem 8.2 on page 290] The members of many corporate boards of directors have to be reelected by the firm’s stockholders every year. Some corporations, though, have staggered elections for their boards of directors, with only one-half or one-third of the members being up for
[elated to Solved Problem 8.2 on page 290] Briefly explain whether you agree with the following argument:“The separation of ownership from control in large corporations and the principal–agent problem mean that top managers can work short days, take long vacations, and otherwise slack off.”
Sales personnel, whether selling life insurance, automobiles, or pharmaceuticals, typically get paid on commission instead of a straight hourly wage. How does paying a commission help solve the principal–agent problem between the owners of a business and the sales force?
Principal–agent problems usually affect large corporations, more than small businesses. Explain why asymmetric information plays a role, devise a strategy to eliminate it, and discuss the potential problems in implementing such a strategy.
Comment on one of the advantages of sole proprietorships, the lack of management layers, in the light of the principal–agent problem explained in the chapter. Why could it be a problem for a firm to have two separate persons as a principal (the owner) and an agent (the manager)?
Why is it important for a board of directors to have outside directors, as opposed to only inside directors?roblems and pplications
[elated to the Making the Connection on page 288]Muhammad Yunus is a Ph.D. economist and winner of the Nobel Peace Prize in 2006. He founded the Grameen Bank and was an innovator in using microcredit, or small loans—often of $100 or less—to spur growth in developing countries.“Yunus realized
[elated to the Making the Connection on page 288]Small firms represent a more vital resource for the future growth perspectives of an economy than large firms do.What would you infer from such a statement?
According to an article in the Economist magazine, historian David Faure has argued that the Chinese economy failed to grow rapidly during the nineteenth century because“family-run companies . . . could not raise sufficient capital to exploit the large-scale opportunities tied to the rise of the
Evaluate the following argument:I would like to invest in the stock market, but I think that buying shares of stock in a corporation is too risky. Suppose I buy $10,000 of Facebook stock, and the company ends up going bankrupt. Because as a stockholder I’m part owner of the company, I might be
Unlike in the U.S., in Italy many firms employ fewer than 10 people. Would this imply that tax exemptions for small businesses are more effective in stimulating the Italian economy than in the U.S.?
Explain the circumstances under which it is advantageous to set up a business as a sole proprietorship. Are those circumstances different from those favoring a corporation set up? Briefly explain your answer.
Why is limited liability more important for firms trying to raise funds from a large number of investors than for firms trying to raise funds from a small number of investors?roblems and pplications
Suppose consumers pay less than the true cost of medical services because a third party, such as an insurance company or the government, pays most of the bill. In the graph, D1 represents the demand for medical services if consumers paid the full price of medical services; D2 represents the demand
[elated to the Chapter Opener on page 253] Working conditions in developing countries are often considerably worse than working conditions in developed countries.If working conditions are analogous to fringe benefits, would requiring companies in developing countries to substantially improve
[elated to the Making the Connection on page 275]A column in the Wall Street Journal observes that: “Independent websites like Edmunds.com, AutoTrader.com and Kelley Blue Book publish detailed pricing information [on automobiles] for consumers and do so for free.Consumers want such information
[elated to the Making the Connection on page 270]Employees in most circumstances do not pay taxes on the value of the health insurance provided by their employers.If employees were taxed on the value of the employer-provided health insurance, what would you expect to happen to the overall
Nobel Laureate Robert Fogel of the University of Chicago argued that: “Expenditures on health care are driven by demand, which is spurred by income and by advances in biotechnology that make health interventions increasingly effective.”a. If Fogel was correct, should policymakers be concerned
Ross Douthat, a political columnist, offers the following observations about the Medicare program:Certainly telling seniors to buy all their own health care is a complete political (and ethical)non-starter. But telling seniors to pay for more of their own health care—well, it’s hard to see how
Some economists and policymakers have argued that one way to control federal government spending on Medicare is to have a board of experts decide whether new medical technologies are worth their higher costs. If the board decides that they are not worth the costs, Medicare would not pay for them.
Would you consider health care costs to be the only costs associated with an aging population? What other things should be taken into account when considering the relationship between public finances and aging populations in a country?
What arguments do economists and policymakers who believe that market-based reforms are the key to improving the health care system make in criticizing the ACA?roblems and pplications
Would a rapidly aging population of an industrialized country affect its health care systems in the future?
What is the Patient Protection and Affordable Care Act(ACA)? Briefly list its major provisions.
[elated to the Making the Connection on page 267]Think about the concepts of public goods and externalities that have been explained in previous chapters. Which concept would be best suited for you to use to accurately describe the characteristics of health care within your country?
[elated to Solved Problem 7.3 on page 264] An article in the Los Angeles Times describes a healthy 23-year-old woman who has decided not to buy health insurance as“exactly the type of person insurance plans, states and the federal government are counting on to make health reform work.” Why are

Showing 2500 - 2600 of 6303

First
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
Last

Step by Step Answers

Services

Sitemap
Fun
Definitions
Become Tutor
Used Textbooks
Study Help Categories
Recent Questions
Expert Questions
Campus Wear
Sell Your Books

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship
Online Quiz
Give Feedback, Get Rewards

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Student Discount
Campus Ambassador

Secure Payment

Download Our App

© 2026 SolutionInn. All Rights Reserved