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Describe the difference between public versus private goods as it relates to the rivalry in consumption and excludability. does the free rider principle play in a role in what constitutes a private or a public good/service? why? how do externalities positive or negative play a role regarding the demand and supply of a good or a service and what can government do to promote greater social welfare and reduce market failure in addressing negative externalities?
An investor estimates that investing €5 million in a particular venture capital project can return $40 million at the end of five years if it succeeds; however, she realizes that the project may fail at any time between now and the end of the fifth y..
Suppose that this year the money supply is $500 billions, nominal GDP is $10 trillions, and Real GDP is $5trillions. What is the price level in the economy this year? How often is dollar spent on the economy output this year?
Identify an instance where a price control is used in our markets. Why do you think this price control exists? Also discuss the possible negative effects it may have on the market
Professors required each student to buy 10 notebooks, regardless of the price. The quality of textbooks increased dramatically from 2014 to 2016, with textbook companies bundling new online study aids with their books, but this quality change is h..
Suppose the consumption behavior in problem 1 changes so that C=100+0.9Y, while I remains at 50. Assume an economy without government and without trade. Suppose the Consumption function is given by C=100+0.8Y , whereas I=50.
Illustrate what is the market elasticity of demand. What is your elasticity of demand in this Cournot oligopoly.
q.based on market research a recording company obtains the following information about the demand and production costs
A competitive firm has a short-run total cost curve STC (q)= 0.1q^2 +10q +40. Find and plot the SAC and SAVC curves. For this function, the SMC curve is given by SMC (q)= 0.2q +10.Include this curve in your diagram for part b. Write the equation for..
Monetary and fiscal policies can often change simultaneously. In the early 1980’s, the U.S. government cut taxes and ran a budget deficit and the Federal Reserve pursued a contractionary monetary policy. Given that the government’s goal was to raise ..
question 1nbspbusiness economics is a useful toolbox for understanding the business environment and making better
Suppose a consumer currently has $1000 with which to buy food for this year (c1) and for next year (c2). In both periods, the price of a unit of food is $1. Assuming the consumer has “standard” preferences defined over c1 and c2, depict a typical con..
Increase in demand and increase in supply will lead to?:
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