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Identify the four market structures by characteristics; explain how to calculate and graph the profit maximizing price and quantity in the output markets by use of marginal analysis.
Suppose that demand for a product is Q=140-6P and supply is Q=2P-20. Furthermore, suppose that the marginal external damage of consuming this product is $4 per unit. Does it result in under consumption? Or over consumption? How many more or less unit..
You sell bicycle theft insurance. If bicycle owners do not know whether they are high- or low-risk consumers, is there an adverse selection problem?
Suppose there are two types of workers: high-ability and low-ability. Workers know their own abilities but firms do not. A high school diploma costs a high-ability person $10,000 and costs a low-ability person $15,000. What value of $K guarantees tha..
Write an algebraic formula that gives Mr. Midas' demand for money as a function of bond and chequing account interest rates.
In the international marketplace, countries are categorized based on their stages of development. A marketer needs to be clear on these categories in order to determine the potential demand for its products/services.
A firm has enough retained earnings to finance an investment project. For this firm, the market interest rate:
Suppose the market demand for a good is described by the demand function P = 160 - 2Q. It follows that the total revenue function relating the total revenues (TR) to the quantity sold (Q) is:
Explain why the classical supply curve is vertical. What are the mechanisms that ensure continued full employment of labor in the classical case? How does the Keynesian aggregate supply curve differ from the classical one? Is one of these specificati..
Why is it dangerous to wait for inflation to materialize to implement a monetary policy?
Some politicians have suggested that the United States enact a constitutional amendment requiring that the federal government balance its budget annually. Explain why such an amendment, if strictly enforced, would force the government to enact a cont..
As economists of the following companies, what advice would you give for cost saving measures for the start-up businesses in the U.S. economy such as Intel, Starbucks, Microsoft, Dell, Google and Cisco Systems?
A university has a fixed number of parking spaces for students on campus. They are currently sold at a price that clears the market. Suppose there is a proposal that the price should be lowered and a lottery held to determine who may park on campus. ..
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