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Business Behavior and public policy
1. Define Market power, and then discuss the rationale for government regulation of firms with market power.
Rent Seeking
2. Explain how rent seeking can lead to a drop in production of goods and services. What role might the underground economy play in lessening the drop in productive activities?Offical Poverty Level
3. Although the poverty rate among single mothers has decreased since 1960, the number of poor children from such families has more than doubled. Explain
Income Differences
4. List some reasons why household incomes differ. Which factors are the most important?
Official Poverty Level
5. How does the U.S. department of agriculture calculate the official poverty level? What government assistance programs does the census bureau consider when calculating household income? What programs are ignored?
VMIC Corporation has asked you to look at the following data. The interest rate is 10 percent.
If the total cost of producing 20 units of output is $1000 and the average variable cost is $35, what is the firm's average fixed cost at that level of output?
When negative or positive externalities exist economists say that market has unsuccessful to make the right amount of the good at the right price. What do economists mean through this?
Think that the following entry game. Here, company B is an existing company in the market, and company A is a potential entrant. Company A must decide whether to enter the market or stay out of the market.
Can both monopolies continue endlessly? Why or why not for each example and what factors could cause the monopolies to end?
Would you expect the price elasticity of demand to be higher for financial-aid students or for non-aid students? Why and how does a student's income elasticity affect the demand for higher education at College?
The federal Insurance Contributions Act tax is a payroll tax that finances Social Security and MEdicare. By law, employees each contribute 7.65 percent of the workers wages toward the events.
Determine what is the cumulative change in concentration of iodide ion at each of these four times?
Describe planning or operating decisions for your new or existing good or service based on the economy's stage in the business cycle and other economic conditions.
Find out the optimal price and quantity with standard pricing. Which is the per-customer profit for the gym? What is the consumer surplus?
Describe the difference between a diminishing marginal product of labor and a negative marginal product of labor. Why would a profit-maximizing firm always choose to operate where the marginal product of labor is decreasing (but not negative)?
Among the 4 principal market structure models, monopoly and oligopoly offer best opportunities for the firm to earn economic profits in the long run. What are some strategies for firm which is earning economic profits to legally sustain them over ..
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