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Discuss, using supply and demand analysis, the effect on the equilibrium price and quantity of new hybrid automobiles when the following occurs. You may use graphs similar to the readings in Week One (you do not have to show the graphs), to determine the change in the equilibrium price and quantity, and then explain your answer. Is the equilibrium price higher or lower, or is the change indeterminate? Is the equilibrium quantity higher or lower, or is the change indeterminate?
Calculate the total fixed costs, total variable costs, average fixed costs, average variable costs, average total costs, as well as marginal costs.
Elucidate which firm's product provides the greatest value-created.
Compute how this policy affects consumer surplus, and the cost of pollution. Would you recommend this policy.
Assume the farmer buys insurance that pays 3$ if it doesn't rain but costs 2$. Illustrate what is their consumption when it rains.
Illustrate what happens when a per unit subsidy is replaced with a revenue equivalent lumpsum subsidy.
Assume that the industry wants to expand and has to make some long-term capital budgeting decisions. Now the industry is confronted with government regulations to oversee the merger.
Elucidate why does sex discrimination seem to persist on Wall Street in spite of the negative publicity of lawsuits and monetary costs of settlement.
Domestic produces often base their claim for import protection on the fact that workers in country X are paid substandard t wages.
Use a production possibilities frontier to illustrate the production options. Be sure to label your drawing. Identify a point that is efficient.
movements along the consumption function while changes in wealth lead to a shift of the consumption function.
What are the strengths and weaknesses of the measure of welfare used by many economists: consumer welfare plus producer surplus.
Calculate the initial level of output per person, the growth rate of output per person also the level of output per person after 100 years.
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