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1. Draw a supply-and-demand diagram to explain the effect of a negative externality that occurs as a result of a firm's production process.
2. The federal government tests the safety of car models and provides the test results free of charge to the public. Do you think this information qualifies as a public good? Why or Why not?
3. Define and give an example of a public good. Can the private market provide this good on its own? Explain.
Henry, a resident of Nevada, sued Adam, a resident of Utah in the Federal Court in California. He sought $60,000 damages for personal injuries arising from an automobile accident that occurred in Los Angeles, California. Does the Federal Court hav..
The payoff matrix below shows the payoffs for two coffee manufacturers, Cambridge and Greystone, which are deciding whether to advertise. The blue payoffs show Cambridge's profit for different strategies selected by each firm. The orange payoffs s..
Calculate point elasticities at prices of 5 and 9. Is the demand curve elastic or inelastic at these points?
branding iron products a specialty steel fabricator, operates a plant in the town of west star, texas. the town has grown rapidly because of recent discoveries of oil and gas in the area. many of the new residents have expressed concern at the amo..
Use a diagram to show the effects of weak exports and investment on actual versus potential GDP in the Canadian macroeconomy and how might the announced trade deal with the European union provide a source of optimism?
7, recent tax reforms make college tuition partially tax deductible for certain families. this should motivate more people to attend college. how will this higher demand for college education affect tuition prices how will it affect the cost of co..
Draw a graph of aggregate demand and aggregate supply to illustrate the current situation. Be sure to include the aggregate demand curve, the short run aggregate supply curve and the long-run aggregate supply curve
Monopolies are price makers and as such should be able to set price where they will make a profit. Is this statement true? Why or why not?
Advertising can inform buyers, but sellers must incur costs to advertise. If so, advertising can result in higher prices to consumers. Does this mean advertising is economically inefficient If so explain how it can simultaneously create value and ..
An engineering practitioner can lease a fully equipped computer and color printer system for$800 per month or purchase one for $8500 now and pay a $75 per month maintenance fee. If the nominal interest rate is 15% per year.
Why is representative money more useful than commodity money. representative money has value because the government says it does or else.
Think the market for personal computers. Assume that the demand is constant : the demand curve does not change. Predict the effects of the following changes on the equilibrium price of computers.
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