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Suppose a farmer (A) faces the payoff matrix below to describe the income she would derive from her choice of pesticide use relative to the choices of other farmers. The reason for this payoff matrix is the development of pesticide resistance due to high levels of pesticide exposure. Describe the situation the illustrated by the payoff matrix and discuss how the economics of pesticide resistance parallel the economics of fisheries management. (20 points) Return on $1 investment of pesticide application Other farmers Low usage High usage Farmer A Low usage $10 $5 High usage $15 $7
Where does this short-run aggregate supply curve intersect the long-run aggregate supply curve that you drew? Just need an explanation of what it woudl look like?
You are in charge of hiring for the sales department of Nature’s Own chemical company. You are choosing between two workers, a “safe” worker who will produce 250 thousand dollars in sales (net of variable costs) in each of the next four years. Set up..
Consider a homogeneous duopoly market where two Örms compete in prices (Bertrand). Demand is given by D(p) = 16 2p. There are no production costs.
Utilize Managerial Economics to make your case, and remember that the Senator has not had benefit of the course you are taking. demonstrate and document the trends in medical costs
You are the manager of a monopoly. The consumer’s inverse demand function for your firm’s product is P = 100 –20Q, and your cost function is C (Q) = $20Q. Part a Determine the optimal two part pricing strategy. Part b How much additional profit do yo..
Suppose there are two firms with one demand function. This same (common) demand function is: What are the optimum prices (Ps) and quantities (Qs) for each firm? Which firm, firm #1 or firm #2 produce more and why? Long run average cost curve decrease..
During 2007, the United States and Japan announced possible limits on Chinese imports through higher tariff rates on Chinese products. To avoid these limits, China would have to: decrease the value of the yuan and increase its trade surplus
Lets assume that we admitted more students this semester (1200) than last (1100) and because of it there is a shortage of “B” parking spaces. Students also complain about the parking permit price ($100).
If the government assigns private property rights to a common resource, then the
Suppose Nation A can produce 2 million pounds of sugar per week OR 1 million pounds of rice in a week and Nation B can produce 10 million pounds of sugar per week OR 3 million pounds of rice in a week.
The dominant factor affecting medical care delivery and finance in the 1990s was. What is the most important factor leading to rising health care costs in the United States since 1980? Pharmaceutical companies receive patents as an exclusive right to..
Disneyland has two possibilities for pricing rides at its theme parks: (1) Set MR = MC for each ride and charge the maximum price consumers will bear. (2) Charge an admission fee to the theme park but allow unlimited rides for free. Using graphs, sho..
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