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1. What is the difference between economic and accounting profits?
2. Why is it hard for Cournot oligopolies to jointly conform to the monopoly price and quantity outcome?
A consumer has utility function given by u(x_1, x_2) = Squarerootx_1x_2. Suppose the price of good 1 falls from $5 to $2. while the price of good 2 and the consumer's income remain constant at $10 and $100, respectively. Find the substitution, income..
How and why have population demographic changes, disease pattern changes, increased costs, and increases in supply and demand for health care services impacted the US health care system?
Smokey's Garage, Inc., provides routine auto diagnostics for customers in the Atlanta, Georgia, metropolitan area. Tests are supervised by skilled mechanics using equipment produced by two leading competitors in the auto test equipment industry. Does..
Should the Miami plant be closed or continue to operate at a loss in the short run? How would you explain to the incorrect party that he is wrong?
Suppose that Country B has the same amount of net private saving in Year 1 and in Year 2. However, the government of Country B has a budget surplus of $200 billion in Year 1 and a budget surplus of $100 billion in Year 2. Other things equal, this ten..
Terms of the sale (who pays for what in terms of final delivery), or IncoTerms, are another source of expenses (costs) for the exporter and in a way another source of price escalation. Describe the different types of Incoterms. Can the costs associat..
Does built in stability mean assume that non-discretionary changes will take place automatically, provide tax rates and systems in a place.
State the rule for optimum input allocation to produce a given level of output at the lowest possible cost -when two inputs are variable and the prices of the inputs are given- and explain why it makes sense.
What are the two kinds of stock corporations issue to finance their assets? List the main characteristics of each. (Common stock valuation, constant growth) You’ve discovered a company that is expected to pay $2.25 dividend at the end of this year. W..
Suppose a market is defined too narrowly as product A. That is, the correct definition of the market should include other products as well, such as B, C, and D. Explain how this affects the values of the concentration ratio and Herfindahl index. What..
q.suppose the production function is y 10k14 el34 and the capital lasts an average of 10 years. assume that the rate of
A government program guarantees $18,000 in income, even for those who do not work at all. If the recipient earns income by working, then the $18,000 benefit is reduced by 50 cents for each $1 earned. Will this program eliminate the poverty trap?
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