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Development economists consider the phenomenon of child labor as an example of ‘bad equilibrium’. Discuss briefly any two alternatives to a complete ban on child labor.
A single-price monopolist sets price?
Why would China want its own currency to be undervalued relative to the U.S. dollar? How does china maintain an undervalue currency?
Jamie Dixon is the operations manager for Pitt Corp, a real estate investment firm. Jamie must decide if Pitt Corp is going to invest in a strip mall in Oakland. If the strip mall is highly successful, after tax profits will be $100,000 per year. Mod..
The manufacturer is especially concerned that customers who receive lousy service will blame the manufacturer if the machine breaks down, not the ISOs. How should the manufacturer address this problem?
Suppose you have an asset with internal rates of return of 5%, 7%, 22% and 29%. Given that the client has a MARR of 12%, which IRR would you tell them about and why?
Quotas and tariffs can: Macroeconomics is:
The cost functions of a competitive firm are: TC = 40 + 2.5Q2. The marginal cost function is MC = 5Q. There are currently 200 identical firms in the industry. The demand function is P = 16000/Q. Find the market equilibrium price and quantity. Explain..
Suppose that U.S. government actively uses the fiscal policy to fight against recession and rising unemployment. To incorporate this behavior of government into the model, let’s assume that the government spending equation is given by where 0. Assume..
Outline some poly options for government intervention. Describe how market power prevents optimal outcomes. Explain how externalities distort market outcomes. Explain how the economic growth is measured.
Do you think such a policy will increase demand for electronic appliances.
The Occupational Safety and Health Administration (OSHA) has determined that the probability of a worker dying from exposure to a hazardous chemical used in the production of fertilizer is 0.008. The cost of imposing a regulation that would ban the c..
For a product, at a price of $3, quantity demanded is 60 units and at a price of $5 quantity demanded is 40 units. Using midpoint formula, calculate value of price elasticity of demand.
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