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There are two ways to protect your car from theft. The "club" makes it difficult for a car thief to take your car. Lojack makes it easier for the police to catch the car thief who has stolen it.
Which of these types of protection conveys a negative externality on other car owners ?
Which one conveys a positive externality?
Are there any policy implications in your analysis ?
Florida Citrus Mutual, an agricultural cooperative association for citrus growers in Florida, needs to predict what will happen to price and output of Florida oranges under situations below.
Dana's Doorsteps (DD) is a monopolist in the doorstep industry. Its cost is C= 10Q and demand is P = 30- Q.
Elizabeth Corday, a quality control supervisor for Surgery Products, Inc., Compute the unit cost growth rate using the constant rate of change model with continuous compounding.
The country now tightens up on (reduces) its money supply dramatically. The country's product price level is not immediately affected, but the price level gradually becomes lower (relative to what it otherwise would have been) during the next seve..
The story states that good weather has resulted in an unexpectedly large crop, which we know will increase supply and reduce the market price for their coffee beans. If all of the farmers know that picking this large crop will guarantee them lowe..
Suppose a product sold in a competitive market is subject to a government price control. Suppose the regulated price is less than the free market equilibrium price.
Keynes describws that the level of output and employment in the economy was determined by aggregate demand or effective demand.
Using a supply and demand graph, make one shift of wither the supply or demand curve to illustrate the likely result of this action.
Use Okun's law to determine the size of the GDP gap in percentage-point terms. If the potential GDP is $500 billion in that year, how much output is being forgone because of cyclical unemployment?
Calculate the long-run equilibrium values of r and P, assuming that the potentiallevel of output (Y*) is equal to 3500 monetary units.
illustrate what types of fiscal and monetary policies are taken to stimulate the economy during the recession phase of the business cycle.
A firm has estimated the following demand function for its product: Calculate the advertising elasticity of demand and explain its meaning.
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