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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?
Negative externalities such as water or air pollution lead to an inefficient allocation of resources. Explain why. Use a carefully constructed diagram to aid in your explanation. Such externalities have been dealt with mostly through command and cont..
In this module, it is demonstrated that sometimes extensive diseconomies of scale, say, due to high transportation costs, would require that the firm produce its product in a multiple of plants. Suppose a beer brewing company has determined that i..
When a system of pollution rights is in office, polluters have no economic incentive to reduce the amount of pollution they generate. Over time banks have become more efficient at using bank capital and thus use less of it relative to the assets they..
q1. assume anna can either wash 12 cars or wax 4 cars every day also bob can either wash 6 cars or wax 3 cars every
The salvage value at the end of the useful life is 0$0.00 (zero) sing a straight line depreciation method and double declining balance find the depreciation at each year and the book value .
Given the current situation in many African countries, do we see the Tragedy of the Commons occurring? Consider not only how the “tragedy” is impacting the current population but also how hit may be devastating to coming generations. Give examples an..
q.the blair companys three assembly plants are located in california georgia and new jersey. previously the company
Demand and Supply of Rolls of Film - Assignment The table below shows the demand and supply schedules for rolls of film. Price Quantity demanded Quantity supplied ($ per roll) (rolls per week) (rolls per week) 2.00 3,000 1,000 3.00 2,500 1,500 4.00 2..
The U.S. economy experienced large trade deficits in the 1980s and 1990s and tremendous economic growth in the mid- and late-1990s.... Explain verbally the relationship between investment and long-term economic growth and describe the relationship gr..
Aramco Inc operates in a competitive market with the cost function as follows: TC = 100 + q3 – 12q2 + 60q. If the price per unit is $ 20, find equilibrium level of output. Determine the shutdown quantity of this firm.
If interest rates differ between two countries, it is an indication that the financial markets are not in equilibrium, and that investment flows should be taking place between the two countries. Agree? Disagree? Explain.
When the Fed sells government securities:
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