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Although he was a prolific artist, Pablo Picasso painted only 1,000 canvases during his "blue period." Picasso is now dead, and all of his Blue Period works are currently on display in museums and private galleries throughout Europe and the United States.a. Draw a supply curve for Picasso Blue Period works. Why is this supply curve different from ones you have seen?
b. Given the supply curve from part a. the price of a Picasso Blue Period work will be entirely dependent on what factor(s)? Draw a diagram showing how the equilibrium price of such a work is determined.
c. Suppose rich art collectors decide that it is essential to acquire Picasso Blue Period art for their collections. Show the impact of this on the market for these paintings.
Should a government be involved in funding banks on Wall Street andlarge automakers out of debt with federal funds so they can stayout of bankruptcy? Does this help or hurt our economy andwhy?
Your company is considering the purchase of new earth movingequipment. The total purchase is $240,000 and we pay with $100,000 cash and borrow therest. (12% per year nominal, compounded monthly for 5 years).
In this economy, compute private saving, public saving, and national saving
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Some of the fields have large enough quantities of both oil and natural gas that coordination must achieved for the production of both rather than oil alone.
When thinking about the theory of the firm, shirking, and principle-agent problems, we can find analogous situations in our personal lives. Make a Power Point presentation (for sharing with the class) two personal situations to illu..
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If all firms in perfect competition have the same average revenue and pay the same price for inputs such as labor and materials, why do they not all have the same profit What is a natural monopoly Why is government justified in regulating a natural..
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