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How do positive and negative externalities lead to under- and over-allocations of resources?
Two identical firms compete as a Cournot duopoly. The inverse market demand they face is P = 150 - 2Q. The cost function for each firm is C(Q) = 6Q. The total industry output will be
In many parts of Europe during the mid-1770s, governments gave guilds, or organizations of producers, the authority to control who was allowed to produce a good, the amount of the good produced, and the price charged for the good. Would you expect mo..
For a “normal” good, the income and substitution effects are not opposing forces. That is, for a “normal” good, the substitution and income effects of an increase in the price will both cause a reduction in the quantity purchased. Assuming both types..
What software applications are you currently using that are completely based in the cloud?
Describe three or four key factors that impact the price of truffles. Which of these key factors do you think has the greatest impact on the price of truffles?
How does the federal reserve really influence the interest rates and cause them to go up and down? Also when the federal reserve sells securities they take money out of the economy because banks buy the securitie.s But my question is what kind of sec..
Nepal as a small open economy declared war on Germany on 4 September 1939, in which its government purchases increased and the rest of the world's government purchases also increased due the large defense spending. Then, for Nepal, holding others thi..
Imagine you are the marketing manager for a U.S. manufacturer of disposable diapers. Your firm is considering entering the Brazilian market. Your CEO believes the advertising message that has been effective in the United States will suffice in Brazil..
You are the owner of a family-owned restaurant. You do not pay yourself a salary or an hourly wage. How and why does this practice affect the economic cost of serving your patrons?
A $1000 face value bond has a 6.85 percent semi-annual coupon and sells dor $980.00. What is the current yield? A 7 percent coupon bond has a face value of $1000 and pays interest annually. The current yield is 6.8 percent. What is the current price ..
The U.S. Treasury bill is yielding 2.6% and the return on the market is 11.2%. The corporate tax rate is 30%. What is the firm's weighted average cost of capital?
To encourage energy efficiency of homes, government offers tax credits for families that spend money to improve energy efficiency of their homes. Use a market model (graph) for home insulation products to show how the tax credit will influence the eq..
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