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Professional sports leagues often have salary caps that limit the amount individual teams can pay players. Using the prisoner's dilemma game, explain why such a restriction might make the team owners better off.
Let X = the monthly tons of dirt moved and assume that it does not change with time. Draw the cash flow diagram for this project as a function of X. Assume that "up" arrows are savings or revenue and down arrows are expenses. If you cannot do part..
The marginal cost (which equals the average variable cost) of serving an additional patron, either senior or everyone else, is equal to $4. Fixed costs are equal to $1000.Ps = 80 - Qs Pe = 100 - 2Qe Show that MRe = MRs = MC
in the spring 2008, Senators John McCain and Hillary Clinton proposed a temporary elimination of the federal gasoline tax, effective only during summer of 2008, in order to help consumers deal with high gasoline price. what does this fact suggest ..
Fred is a salesman who can sell enough to generate $200,000/year worth of profit for his company. He earns only $110,000 in compensation.
What are the comparative risk considerations between the two?
How might a critic respond to the claim that taxes always make the allocation of resources less efficient?
Dan loves pizza. His firm, Dan’s Pizza Company, makes frozen pizzas. The market price of a pizza is $15, and Dan is a price taker. His daily cost of making pizzas is C(Q) = 5Q + Q2/80, and his marginal cost is MC = 5 + Q/40.has an avoidable fixed cos..
Evaluate Eskoms products in terms of the availability of close substitutes
Obtain standard errors of your estimates in part (a) using the Wild bootstrap with and using the bootstrap (with B = 9; 999) test H0 : 2 = 0 vs. H0 : 2 = 0 at the 5% level.
What are the implications for the mix of high- and low-quality apples in apple-growing areas and other regions? Where will most of the high-quality apples be sold?
If people in Pantherville hold all money as currency, what is the quantity of money? b) If people hold all money as demand deposits and the Bank of Pantherville maintains 100% reserves, what is the quantity of money? c) If people hold equal amount..
Assume that instead the market is monopolized and the monopolist's marginal cost function is 2+Q. Calculate the consumer and producer surplus. How much has the producer gained versus the competitive example in part 1.
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