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1. What type of compensation policy would you expect to observe in an industry with rapidly changing technology? Explain.
2. Suppose you are the owner-operator of a gas station in a small town. Over the past 20 years, you and your rival successfully kept prices at a very high level. You recently learned that your rival retiring and closing his station in two weeks. What should you do today?
3. What is a market failure? Explain how externalities, public goods and asymmetric information are all problems with private property rights.
4. "The government should not be sole provider of a good or service unless there is a compelling reason." What compelling reason? Would you agree that issuing drivers licenses must be left to the government?
5. What does it mean to say "Profit opportunities attarct firms like sharks to blood?
6. Suppose a firm is selling a product for less than a foreign country does in the home country and an antidumping suit forces an end to the practice. Is it possible that the result is a loss in effciency? Explain.
7. Explain why rent-seeking competition tends to dissipate rents-to drive them down so that there are no abnormal rents.
as the lead software engineer for a medium-sized hospital you have been asked to spearhead an effort to improve the
Homemakers are not included in the employment or labor force totals compiled by the Bureau of Labor Statistics household survey. They are included in the working-age population totals. Suppose that homemakers were counted as employed and included in ..
For each of the following production functions, determine if the technology exhibits increasing, decreasing, or constant returns to scale.
a family decides to save for the college education of their kindegradener starting with her 6th birthday. they would
Cost-Plus Pricing. Wendel Stove Company is developing a "professional" model stove aimed at the home market. The company estimates that variable costs will be $2,000 per unit and fixed costs will be $10,000,000 per year.
When the Fed sells government securities, it: Increases the amount of excess reserves that banks hold, discouraging them from making loans to the general public.
there are some subsidy features to unemployment insurance primarily for jobs that are unattractive or that offer
(a) If two firms face the same wage and rental price of capital but spend different amounts on labor and capital, how do their isocost lines differ What happens to their isocost lines if the wage rate increases
Kyoko spends all of her money on magazines and beignets
Explain what he has done wrong on each graph and what assumption of preferences is violated by each particular graph.
question 1. libertyville has two optometrists dr. smith s and dr. jones s. each optometrist can choose to advertise his
if a firm wants to maximize profit it will try to minimize the cost of producing a given output or maximize the output
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