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This chapter discusses perfect competition as a benchmark to think about the economy.
a. Can labor market discrimination-hiring someone on the basis of race or gender rather than capability- exist in a perfectly competitive industry?
b. Can the elimination of discrimination increase efficiency? (Feminist)
A purchasing agent for a trucking company is shopping for replacement tires for their trucks from two suppliers. The suppliers' prices are the same. However, Supplier A's tires have an average life of 60,000 miles with a standard deviation of 10,0..
A business magazine is available for $58 for 1 year, $108 for 2 years, $153 for 3 years, or $230 for 5 years. Assume you will read the magazine for at least the next 5 years. For what interest rates do you prefer each payment plan
Two people take turns removing stones from a pile of n stones. Each person may, on each of her turns, remove either one or two stones. The person who takes the last stone is the winner; she gets $1 from her opponent.
Company A has fixed expenses of $15,000 per year and each unit of product has a $0.002 variable cost. Company B has fixed expenses of $5,000 per year and can produce the same product at a $0.05 variable cost. At what number of units of annual prod..
Draw supply and demand diagrams from two different markets, and label the markets A and B. Then use your diagrams to illustrate the impact of the following events. In each case, determine what happens to price and quantity in each market.
Suppose that a country has no public debt in year 1 but experiences a budget deficit of $40 billion in year 2, a budget deficit of $20 billion in year 3, a budget surplus of $10 billion in year 3, and a budget deficit of $2 billion in year 4.
What would be the market price for the product and the equilibrium output for the industry?
Solve these conditions to obtain the steady-state values of C, K, and L. c. What is the effect on the steady state of an increase in b?
Use Shephard's lemma to compute the constant output demand functions for inputs l and k.
If I rises to 100 (we discuss what determines I in later chapters), what will the effect be on the equilibrium income?
Because wage rates are so low in Africa, why don't Microsoft, Cisco and other major corporations close down their American operations and move to Africa?
use the following equations for demand and supply to solve for market equilibrium price and quantitydemand qd 100 -
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