MBA – Managerial Economics

 I. Consider the following demand and supply curves:

QD = 40 – 15P

QS = 6 + 2P

1. Use these two equations to solve for the market clearing price and quantity.

2. Draw the diagram.

3. In the diagram, indicate Consumer Surplus.

4. In the diagram, indicate Producer Surplus.

II. An entrepreneur has the opportunity to start a firm. The entrepreneur’s current income is $300,000. Should the entrepreneur start the firm? Use the following data to compute the profit from the start up. Suppose that the entrepreneur knows that:

Firm revenue: $6,000,000

Wage Costs:    $4,500,000

Capital Costs (machines, buildings, etc.): $1,000,000

  1. Should the entrepreneur start the firm? Hint: Compute profit.
  2. Suppose that capital costs rise to $5,000,000 all else the same. Should the entrepreneur start the business? Explain.

III. Please use FRED: http://research.stlouisfed.org/fred2/ (Links to an external site.)

A. Plot GDP for the U.S.

  1. Real Gross Domestic Product from 1947 to present (Billions of Chained 2012 Dollars, Seasonally Adjusted)
  2. Gross Domestic Product from 1947 to present (Billions,  seasonally adjusted)
  3. Define each series and explain the difference between real and nominal GDP.
  4. Explain what the 2012 index means.

B. Plot inflation for the U.S.

  1. Consumer Price Index: All Items for the U.S. City Average from 1947 to present (annual, seasonally adjusted), CPIAUCSL.
  2. Personal Consumption Expenditures Excluding Food and Energy (Chain type Price Index): All Items for the U.S. from 1959 to present (Index 2012, seasonally adjusted, monthly), PCE.
  3. Producer Price Index, all commodities, PPIACO.

C. Plot unemployment for:

  1. Civilian unemployment rate from 1948 to present (percent, seasonally adjusted, monthly).
  2. Unemployment Rate in Iowa from 1976 to present (seasonally adjusted, monthly). Add this series (IAUR) to national series.
  3. Labor Force Participation Rate (CIVPART) and age groups (16-19 yrs, 20-24 years, 25-54 years, 55 years and over) and by gender.
  4. Briefly explain the graphs.
Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more