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Using the broken window fallacy as described in “In The News” (p. 14 of Principles of Microeconomics), explain why some journalists, policy makers, and others proclaim that natural disasters are good for the economy in terms of eliminating old infrastructure and helping to create jobs. Do you agree or disagree? Provide specific examples to support your answers.
Suppose in the United States, one worker can produce 10 tons of steel per day or 20 tons of chemicals per day. In the United Kingdom, one worker can produce 5 tons of steel per day or 15 tons of chemicals per day. The United States has 30 workers and..
A local phone company has three family plans for its wireless service. Under each of these plans, the family gets two lines (phones) and can make local and long dis- tance (within the United States and Canada) calls for free so long as the total numb..
Many conspiracy theories have been offered as explanations for the assassinations of the great leaders of the 1960s and still fascinate society today. Share some of those conspiracy theories. What contributes to the belief in conspiracy theories?
Conditions that exist when they shut down their operations and the conditions that exist when they resume their operations.
What is organizational structure and what are organizational controls? What are the differences between strategic controls and financial controls? What is the importance of these differences?
A consumer's preferences over two goods are represented by: U(x1, x2) = (x1^2)(x2^3)/100 The prices are P1 and P2, and an amount of money E can be spent on these goods. Show that the two uncompensated demand functions are: x1 = 2E/5p1 and x2 = 3E/5p2
Suppose there are two firms that produce sulfur dioxide emissions, Firm A and Firm B. Each firm emits 30 tons of sulfur dioxide per year. The cost of reducing one ton of sulfur is $200 for Firm A and $250 for Firm B. If Firm B emits 60 tons of sulfur..
Construct a choice table for interest rates from 0% to 100%. If the MARR is 10%, which alternative should be selected? Can you please explain how to solve the problem on excel
Diseconomies of scale exist over the range of output for which the long-run average cost curve is: If a monopolist finds that at the present level of output marginal revenue exceeds marginal cost, the firm should:
Explain why at first patents might seem such as a deterrent to growth because in effect they restrict the use of new technology
Heart Plus faces a cost of holding inventory that is higher than its competitors. The salespeople are clearly overstocking hospitals in their territory. They have asked you to figure out how to fix the problem. Is there any incentive to make a good d..
Newsprint is produced in a perfectly competitive market. Each identical firm has a total variable cost VC= 40q + .5q^2 with an associated marginal cost curve MC = 40 + Q. A firms fixed cost is equal to 50. Calculate the price below which the firm wil..
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