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Think of an example of the principal-agent that you experienced first-hand or read or heard about. What factors led to the problem? Were there serious adverse outcomes arising from the problem? Based on the course material, what suggestions can you offer that would have reduced or eliminated the problem?
Think of a strategy pursued by the company your work for, another company, or even a sports team. How can game theory help improve the outcomes for the decision makers? Explain whether simultaneous-move, repeated-move, or sequential-move games are mo..
Graph a Monopoly. Compare the price, quantity, and ATC of a monopoly with a perfectly competitive firm. Who is more efficient and why?
If physicians can gain large per capita wealth effects from state regulation and consumers can gain relatively small per capita wealth effects from state regulation, which of the two groups does the economic theory of regulation suggest will control ..
Illustrate what would be the production possibility frontiers for Brazil as well as the United States.
Under which market structure would you classify the airline industry? Given this structure, why is it that there is little price competition between carriers on the same route? Why is there not more price competition? If they do not choose to compete..
A monopoly firm faces a demand curve given by the following equation: P = $500 − 10Q, where Q equals quantity sold per day. Its marginal cost curve is MC = $100 per day. Assume that the firm faces no fixed cost. How much will the firm produce? Can yo..
Select one country and list 5 elements of its cultural environment. For each cultural element, explain the impact on international business. Limit your answers to a couple of sentences for each element of culture.
Assume that you are going to start a small business of your own. Further, imagine that you are able to adequately differentiate your product, or service so that you can establish your business as a monopolistically competitive firm. Describe the busi..
Use the information below to calculate the Consumer Price Index and the inflation rate. The base year is 1975.
When government spending increases by $1, planned expenditures increases by $1 and the equilibrium level of income will increase by $1. When taxes are cut by $1, planned expenditures increase by less than $1, and the equilibrium level will increase b..
Instead of imposinga tariff, the government reached an agreement with foreign suppliers to "voluntarily" limit the portable radios they export to 1,250 per year. What is the deadweight loss resulting from this agreement?
In a current newspaper article you also read that The Camera Shop has exhausted its undertaking capital and that no new investors
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