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Sample Question: Price Elasticity of Demand
1. Give examples of how price elasticity of demand affects your purchasing decision and/or your firmâ??s pricing decision?
2. Discuss several goods you either buy or sell at your workplace that are price elastic. Explain
What are some of the positive externalities of education? Why may higher education offer fewer positive externalities than primary or secondary education?
Find the optimal (profit maximizing or cost minimizing) output of each firm. Find the price that each firm charges at the when producing the optimal output.
You are the manager of an organization in America that distributes blood to hospitals in all 50 states and the District of Columbia.
US cigarette makers face enormous punitive damage penalties after losing a series of class action lawsuits-What action do you suppose the cigarette companies took to avoid bankruptcy?
The ability to create new products and process and to organize production to make goods and sevices available.
Compute total revenue, marginal revenue, marginal cost, and average total cost of this natural monopoly. What is the profit maximizing output and price for this natural monopoly when the government does not regulate it?
What is the difference between the medium of exchange and the store of value? What is the difference between commodity money and fiat money?
Throughout this course we have discussed the 'agency problem' - i.e., when the interests of owners and managers are not properly aligned.
Draw a graph of the Batman family's supply of loanable funds curve fro 1999. Show the influence of this change on the Batman's supply of loanable funds curve.
Assume Helen's income increased from $30,000 per year to $45,000 per year and Helen\'s crab meat consumption went from 25 pounds per year to 30 pounds per year.
Suppose two identical firms produce widgets and they are the only firms in the market. Find the Cournot-Nash equilibrium.
In Bayonne, New Jersey, there is a large beauty salon and a number of smaller ones. The total demand function for hair styling per day is Q=180-10P, where P is in dollars.
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