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As consumers we loke competition because it lowers prices and increases supply.
Many products and services we use started out with limited choices and high prices.
Then for various reasons more competitors entered the market and our choices increased and prices fell.
What is an example you can think of where more competition has brought you more choice and lower prices? Is it always good? Is there a downside to it?
Consider the market for steel. Suppose that a steel manufacturing plant dumps toxic waste into a nearby river, creating a negative externality for those living downstream from the plant. Producing an additional ton of steel imposes a constant externa..
Discuss the differences between integrative and distributive bargaining and the conditions in which either or both are used in the negotiation process. Describe Thompson’s Pyramid Model and its relationship to parties in bargaining situations, and wh..
Some people who believe monetary policymakers should not address equity and property price bubbles, argue their position based on:
The prime minister of your chosen country feels that local infant industries must be protected through the use of trade restrictions. She believes that your product is part of an industry in which companies within her country should be given an advan..
A patient goes under the knife and will either die right after surgery, survive for 1 year, or survive for 2 more years. Assume that the probability of surviving for a year is 60% and surviving for 2 years in 30%,
A pork-processing facility is considering installing either a storage facility or a holding pond. A biosystems engineer has been hired to evaluate the economic trade-offs for the two alternatives. Determine which alternative is preferred for lives ra..
In the land of free trade, the public does not view all industries as equal. Do you believe that is ethical? Do you believe that some industries are unfairly targeted? Become an advocate for either the consumer or the industry. Prepare an argument ex..
Susan quit her job as a teacher, which paid her $36,000 per year in order to start her own catering business. She spent $12,000 of her savings, which had been earning 10% interest per year, on equipment for her business. She also borrowed $12,000 fro..
Fifth Problem Earl sells lemonade in a competitive market on a busy street corner in Philadelphia. His production function is f(x1, x2) = x 1/3 1 x 1/3 2 , where output is measured in gallons, x1 is the number of pounds of lemons he uses, and x2 is t..
Net exports are
A snickers bar costs $1.00 each at the concession stand at Notre Dame football games. Amanda revealed how much she is willing to pay for each snickers sold at the concession stand. She value the first bar at $2.00 and her marginal benefit declines by..
You borrow $42,000 and repay the loan with 6 equal annual payments. The first payment occurs one year after receipt of the $42,000 and you pay 8% annual compound interest. What is the payment size when interest is 8% compounded monthly, and monthly p..
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