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Many automotive dealerships, such as BMW, sell low mileage late model used cars, with warranties on defects and repairs that offer more coverage for longer periods of time than the warranties on their brand new cars. Describe the rationale for this practice using the concept of asymmetric information.
Explain Arthur Laffer's theory of tax rates relative to tax revenue. What is the effect of a tax on the deadweight loss Why is it sometimes difficult to predict what will happen when a tax rate is decreased or increased
consider a market characterized by the following inverse demand and supply functions px 50 - 4qx and px 10 2qx.
Doesn't the labor theory of value imply that people should write the labor content of their commodities on the price signs instead of amount of money? How would you answer your friend?
How a competitive market arrives at equilibrium and why the price of tomatoes has risen - Discuss the factors that affect the price elasticity of demand as they apply to tomatoes and make a suggestion based on your appraisal as to the likely price..
a study of the costs of electricity generation for a sample of 56 british firms in 1946-1947 yielded the following
a corporation produces output with a market price of 200 per unit. the marginal product of capital is 12k where k is
in cast away islands there is only one company allelectronics which produces tv. it is the sole employer of engineers
the world of videos operates a retail store that rents movie videos. for each of the last 10 years world of videos has
Historically, shifts towards a more expansionary monetary policy have often been associated with increases in real output. Is this surprising? why or why not?
Imagine a local government is considering opening a public swimming pool in a residential neighborhood
Suppose that the firms markup over costs is 6%, and the wage-setting equation is W = P(1-u+z) where u is the unemployment rate and z is equal to 0.03. What is the real wage as determined by the price-setting equation? What is the natural ..
The subsequent WTO respect the MFN principle?
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