Economics Answers

since the powerball is at 1.3 billion and there are 318 million people in the U.S lets just say you gave every person 2 million dollars would the economy collapse or help it.

Which objective of the firm provides the basis for theory of the firm?

The following regression equation estimates the relationship between the number of cups of hot chocolate sold (H) and number of swimmers (N) at the beach:
H=252.8-2.05N R^2= 0.45.
(2.06) (-3.05) (t values are shown in parentheses)

a) Explain or interpret the regression coefficient of N, the t-values, and the coefficient of determination of this equation.
b) How is it possible that more hot chocolate is sold when there are fewer people at the beach? Does this relationship suggest anything about the specification of the equation?

Many service industries such as restaurants, night clubs, movie theatres and hair
dressers experience much higher demand during weekends compared to week
days. Explain a pricing strategy which would increase profits compared to a
single price profit maximizing strategy. Be sure to include a graph which
explains your demand, marginal revenue, and marginal cost.

1. Advertising is tasteless, offensive, and a nuisance that wastes resources. Do you agree? Give your arguments with suitable diagrams where applicable.

what are the advantages and disadvantages of using the different welfare measures: change in consumer surplus, equivalent variation, and compensating variation?

Pharmaceutical companies are diversified firms. they sell products in many different therapeutic categories and engage in a variety of vertical activities. from research and development to sales and marketing. Many pharmaceutical companies spend a fixed percentage of their sales revenue in R&D. Do you think this simple rule of thumb is a good idea?

The following regression equation estimates the relationship between the number of cups of hot chocolate sold (H) and number of swimmers (N) at the beach: H=252.8-2.05N (2.06) (-3.05) (t values are shown in parentheses) R^2= 0.45. a) Explain or interpret the regression coefficient of N, the t-values, and the coefficient of determination of this equation. b) How is it possible that more hot chocolate is sold when there are fewer people at the beach? Does this relationship suggest anything about the specification of the equation?

a) Derive the expansion path for a firm with the production function Q=10K^0.6 L^0.4 and input prices r = 10 and w = 5.

b) The firm is currently using fifty units of capital and forty units of labor. Is this an efficient input combination?

Use the following data
a) Profit after tax 45,000
b) Depreciation 75,000
c) Tax Paid 25,000
d) Interest paid 5,000
e) Dividend paid 10,000
f) Cash Received from sale of Building 40,000
g) Sale of Preferrence Share 35,000
h) Repurchase of Ordinary Shares 30,000
i) Purchase of Machinery 20,000
j) Issuance of Bond 50,000
k) Debt Retired through issuance of ordinary shares 45,000
l) Paid off long term bank borrowings 15,000
l) Profit on sale of building 20,000
Requirements:
1. Calculate Cash Flow from operating activities
2. Calculate Cash Flow from Investing activities
3. Calculate Cash Flow from financing activities