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An economy produces only agricultural products (x) and manufactured goods (y). A quarter of the land in the country is arid and not suitable for agricultural products. Therefore, if half of the arid land is not used at all:
(a) The economy could be productively efficient when the opportunity cost of x (agricultural products) is infinite;
(b) The economy could be productively efficient when the opportunity cost of y (manufactured goods) is zero;
(c) The economy could be productively inefficient with infinite opportunity cost for the production of x (agricultural products);
(d) The economy could be productively inefficient with infinite opportunity cost for the production of y (manufactured goods).
You are given the following information about the market for market data for a brand of refrigerators. calculate the consumer and producer surplus in this market. Calculate the new consumer and producer surplus in this market. Calculate any deadweig..
An emissions fee is paid to the government, whereas an injurer, who issued and held liable, pays damages directly to the party harmed by an externality. What differences in the behavior of the victims might you expect to arise under these two arr..
Net social benefits are maximized when:
Suppose that a small town has seven burger shops whose respective shares of the local hamburger market are (as percentages of all hamburgers sold): 26%, 25%, 20%, 12%, 9%, 5%, and 3%. What is the four-firm concentration ratio of the hamburger industr..
What is the key problem with measuring marginal q? Is there an alternative measurement that can be used instead? Is this alternative measurement likely to be an accurate proxy for marginal q?
Woody's utility function is U(C, R)= C- (12-R)^2, where C is his consumption and R is the amount of leisure he has per day. He has 16 hours a day to divide between work and leisure. He has an income of 20$ a day from non-labour sources. If Woody can ..
Given a company orders a product and expects the defective fraction, E(p), to be 5%. Demand is 15,000 units annually and they screen at a rate of 60,000 units annually (think of this as the QC check which is done much quicker than demand arrives). Ca..
Using present value analysis math, discuss the cost and benefit of paying for 4 years of college. Make any assumptions you want about the market interest rates. Use math and discuss. Is going to college worth it?
What is the difference between a horizontal merger and a vertical merger? Which type of merger is more likely to increase the market power of a newly merged firm?
Do you think that there is a “retirement problem” in the US, meaning that individuals and families are not saving enough for retirement? What three original pieces of evidence support your observations and conclusions (journal articles, studies, spec..
q. firms like papa johns pizza hut as well as dominos sell pizza and other products that are differentiated in nature.
In the Friedman-Lucas money surprise model, suppose that the central bank wants to reduce the price level. Suppose the central bank has two options: (i) announce in advance that the money supply will decrease; (ii) surprise the public with a decrease..
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