short and long run effects

Suppose the price of heating oil increases significantly. Discuss the likely short-run and long-run effects.

Opportunity Costs, ETC

1. A person rents a house for which she pays the landlord $12,000 per year. The house can be purchased for $100,000 and the tenant has this much money in a bank aacount that pays 4% interest per year. Is buying the house a good deal for the tenant? Where does the opportunity cost enter the picture? Treat this question as a financial tradeoff: the lost interest vs. the gained rent 2. Jasmine's Snack Shop sells two barnds of potato chips. Brand X costs 60 cents per bag and Brand Y costs $1.00. Draw Jasmine's production possibilities frontier if she has $60.00 budgeted to spend on potato chips. Why is is not bowed out? 3. In 1981, when regualtions were holding the price of natu... click for more

Returns to sale

Define returns to scale. Do you think that most businesses are increasing, constant, or decreasing returns to scale.

Monopolistic competition and oligopolies: Define monopolistic competition and oligopolies. Provide two real world examples.

Define monopolistic competition and oligopolies. Provide two real world examples.

prisoner's dilemma

Define prisoner's dilemma. Provide a real world example.