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1. Using the appropriate terminology, explain why public radio stations, which rely on contributions from listeners, always seem to be in financial jeopardy.
2. A home-team baseball victory produces benefits for residents (in terms of hometown pride) that is both nonrival and nonexcludable. The graph below depicts the marginal benefits that Beatrice, Edward, and Charlotte (the residents of a very tiny town indeed) receive from home-team wins. The graph also depicts the marginal costs of achieving each victory.
a. Draw the total marginal benefit received by hometown residents. Graph your result carefully.
b. Determine the socially optimal number of wins. Indicate this amount on your graph.
(Rationale for Rules) Some economists call for predetermined rules to guide the actions of government policy makers. What are two rationales that have been given for such rules?
Suppose that businesses buy a total of $100 billion of the following resources labor, land, capital, and entrepreneurial ability from households, if the households receive $60 billion in wages, $10 billion in rent, and $20 billion in interest
Suppose that the price of a service sold in a perfectly competitive market is $25 per unit. For a firm in this market, the output level corresponding to a marginal cost of $25 per unit is 2,000 units.
A realtor is interested in comparing the asking prices of homes in Philadelphia and Baltimore. A random sample of 21 listings in Philadelphia resulted in a sample mean price of $185,900 with a sample standard deviation of $2,300.
Why would anyone in Zimbabwe be willing to accept U.S. dollars in exchange for goods and services?
An increase in the demand for green tea raises the price of apples from $16 a pound to $20 a pound. As a result, quantity supplied increases by 30 percent. Using the midpoint formula, calculate the value of the price elasticity of supply.
How might a critic respond to the claim that taxes always make the allocation of resources less efficient?
Today a proposed community college is estimated to cost $34.6 million, which is $127 per square foot of space multiplied by 272,310 square feet. If construction cost are expected to increase by 19% per year because of high demand for construction.
Write a brief essay on the U.S. political opposition to CAFTA-DR in 2004 and 2005. What industries in the United States opposed the trade agreement? Is it fair to compare the arguments of these industries to the arguments posed by the candle maker..
A far more complex and dynamic value chain is thus evolving in which network operators, hardware suppliers, content producers and software houses are jockeying for power. Today, it is far from clear who will win the biggest slice of the pie.
The price at point a is $70 and the price at point c is $10 per bag. The price at point d is $56 and the price at point e is $31 per bag. The price at point f is $67 and the price at point g is $32 per bag.
How would you compare the issues in this simulation to the domestic legal issues discussed in your Week One readings? How should companies resolve domestic and international issues differently?
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