Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Economics


Home >> Microeconomics

The City of New Orleans has 200 adverstising companies, 199 of which employ designers of normal ability at a salary of $100,000 a year.

Paying his salary, each of the 199 firms makes a normal profit on $500,000 in revenue. However, the 200th company employs Janus Jacobs, an unusually talented designer. This company collects $1,000,000 in revenues because of Jacobs talent. How much will Jacob earn? What proportion of his annual salary will be economic rent? Why won't the advertising company for which Jacobs works be able to earn an economic profit?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M9742593

Have any Question?


Related Questions in Microeconomics

Question in mid-2002 real growth fell from 5 in the first

Question: In mid-2002, real growth fell from 5% in the first quarter to 1% in the second quarter, and the unemployment rate continued to rise. The stock market was down over 20%. Inflation was stable at about 2%. Many pe ...

Question say that the government is considering a ban on

Question: Say that the government is considering a ban on smoking in restaurants in Tobaccoville. There are 1 million people living there, and each would benefit by $200 from this smoking ban. However, there are two larg ...

Question a firm in a perfectly competitive market invents a

Question: A firm in a perfectly competitive market invents a new method of production that lowers its marginal costs. What happens to its output? What happens to the price it charges? a. The firm has an employee who thre ...

Question suppose a firm has a labor demand curve given by w

Question: Suppose a firm has a labor demand curve given by w = 20 - 0.01E. Furthermore, suppose that the union representing workers in the firm derives utility from the wage rate and the level of employment according to ...

Question now that you have gained a good understanding of

Question: Now that you have gained a good understanding of the theoretical basis and the pre modern evolution and application of economic systems central to the rise of Western Civilization. How did economic growth and t ...

Question discuss the following - what features of medicare

Question: Discuss the following - What feature(s) of Medicare would cause an economist to say that "Medicare stinks as insurance"? Medicare supplement insurance is available from the commercial market and most commonly c ...

Question assume that you plan to construct a portfolio

Question: Assume that you plan to construct a portfolio aimed at achieving your stated objectives. The portfolio can be constructed by allocating your money to the following asset classes: common stock, bonds, and short- ...

Question 1 consider the rothschild-stiglitz adverse

Question: 1. Consider the Rothschild-Stiglitz adverse selection model that we discussed in the class. Suppose a competitive insurance company proposes an insurance policy that provides full insurance to all individuals, ...

Question analyze how a non-income determinant of aggregate

Question: Analyze how a non-income determinant of aggregate demand affects GDP. Choose and analyze one of the below GDP components and associated non-income determinants of aggregate demand: • Consumption -- Net Wealth ( ...

Question debate the relative merits of fixed and floating

Question: Debate the relative merits of fixed and floating exchange rate regimes. From the perspective of an international business, what are the most important criteria for choosing between the systems? Which system is ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved