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Use of the term "behavioural economics" has been criticized on two accounts: redundancyand ambiguity. Briefly explain these two criticisms and determine whether they have anybearing on the merit of this line of economic study.
It is estimated that a certain piece of equipment can save $6,000 per year in labor and material cost. The equipment has an expected life of five years and no salvage value. If the company must earn a 15% annual return on such investments, how much c..
What price should the leader charge to drive all the small firms out of the market? Write the marginal revenue function of the dominant firm.
Explain how Social Engineering can be seen as a threat to the corporate entity by using a creative tool such as PowerPoint®
Find the present-value equivalent to the following geometrically increasing series of payments.
Suppose you had the opportunity to organize the perfect health care system. Explain how you would organize the financing method, reimbursement scheme, mode of production, and physician referral procedure. What are the basic differences between conven..
Suppose Mark invests a sum of $100,000 in a new venture. To fund his investment, Mark withdraws $50,000 from a savings account paying 10% per year and uses the proceeds from a bond that has just matured worth $50,000. If he had reinvested the proceed..
Under U.S. copyright law, authors have the exclusive right to their writings during their lifetimes – unless they sell this right, as most authors do to their publishers – and their heirs retain this exclusive right for 70 years after their death. Di..
Suppose you have been tasked with regulating a single monopoly firm that sells 50-pound bags of concrete. The firm has fixed costs of $10 million per year and a variable cost of $2 per bag no matter how many bags are produced. If this firm kept on in..
Consider the Rubinstein bargaining model of dividing $1 between A and B. A makes the first offer. If B accepts the offer then game ends. If B rejects the offer then B makes an offer to A in the next day. Suppose the bargaining game lasts for 4 days. ..
An engineer deposits $900 each month into a retirement account. After 30 years, the balance in the account is $1.7 million. Determine the effective annual rate of return for this account.
Your pharmacy provides services to Medicare and PPO patients. You estimate a price elasticity of demand of -2.2 for Medicare patients and -5.3 for PPO patients. Your marginal and average cost for dispensing a prescription is $2. What is the profit-ma..
Suppose the layoff rate is 0.02 per month and the average duration of a spell of unemployment is four and a half months. What is the unemployment rate in this economy? Suppose that an increase in employment insurance benefits causes the average durat..
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