17 Jul managerial economics
1. (5 points) Is the concept that profit is the prime motivation for a company consistent with the development of the Covid19 vaccine by companies like Pfizer, Moderna, Johnson and Johnson, Astra Zeneca and others? Please explain.
3. (5 points) The Federal Reserve’s response to the current economic crisis caused by the pandemic has been to lower interest rates. How will lower interest rates affect the present value of future profits for companies and therefore the market value of the companies? Please explain.
Homework 2
1. (5 points) Would you be able to construct a demand curve for Covid19 vaccines in the United States? Please give an explanation.
2. (5 points) Some people have proposed an increase in the minimum wage to at least $15 per hour. What impact would this have on the demand and supply of workers (would the demand and/or supply curve shift or would there be a movement along the curve). Please explain.
3. (5 points) As the U.S. economy opens up and more people get vaccinated, more and more people are travelling within the country.
(a) Please explain what will happen to the demand and supply curves for air travel within the United States. If you say demand (or supply) will change, you must explain why it will change.
(b) Based on your answer to (a) what do you think will happen to the equilibrium price of air travel? Please give an explanation.
