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a. Explain how asymmetric information about a hidden action or a hidden characteristic can lead to moral hazard or adverse selection.
b. Discuss a few tactics that managers can use to overcome these problems.
For each of the following events, state whether the aggregate demand curve would increase, decrease, or stay the same.
The Present Worth (PW) of the cost (- Installed cost and operating cost + Salvage value) of Westinghome is most nearly
An $85 billion sequester (called automatic federal government spending cut) that went into effect on March 1, 2013. This was an across-the-board spending cut in federal government's various existing programs and services, including maintenance of ..
Suppose two high tech companies, X and Y, are the only producers of a new product that is used my numerous computer manufacturers.
Illustrate what policy options are available to the government to counter the effect of a sharp fall in real estate values on the economy.
The effects on the development also diffusion of computer technology in the 1970s and 1980s on the U.S. economy in the late 1990s to the present.
Describe supply and demand, major reason(s) for the price increases and fluctuations, and international factors, if applicable. You should use at least four references.
A rise in corporate income taxes increases the investment in physical capital for any given interest rate.
The maintenance price rose by 6% per year instead of the fixed amount what is the present value of the maintenance costs.
What price and quantity will the monopolist produce at if marginal cost is a constant$4 ? Compute the dead weight loss from having the monopolist produce, rather than the perfect competitor
Suppose Ke, the required rate of return, goes up to 12 percent; what will be the new value of Po?
A. The firm has an employee who threatens to tell all other firms in the industry about how to implement this new technique. Will it be possible to bribe the employee not to do this? Explain why or why not. B. Why should the employee probably choos..
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