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The Great Harvest Bread Company offers their customers quantity (or volume) discounts. Specifically, if a customer consumes 8 or fewer loaves of bread per month, then the price is $4 per loaf. But if a customer consumes more than 8 loaves of bread, then the price is $3 per loaf for each loaf after 8. Graph how that plan affects a consumer's budget set. Under that plan, will a customer ever consume exactly 8loaves?
Master Card has a series of cute commercials that list a series of accounting items and costs leading to a priceless product. Cell phones are often advertised as being free. In economics, it is said that nothing of value is either free or priceles..
For every following events, consider how you might react. What things might you consume more or less of would you work more or less.
In practice, the government would have to be very knowledgeable to divide up the pollution abatement between the plants in the least cost manner. Tradeable pollution permits are one way to get around this concern. Briefly explain why.e. If polluti..
Which would NOT be advocated by modern conservatism Free markets , Small governments ,Laissez-faire economics , Welfare programs , Reliance on tradition.
Suppose the following data about the demand for goods and services. All variables are in billions of dollars. Suppose that potential level of output is $12,000 billion. Use the above data to calculate the size of the output gap?
Your personalized sweatshirt business requires you to hire specially trained employees, so you are a monopsonist. Remember that you must pay everyone the same wages. There is no discrimination.
Suppose that disposable income, consumption, and saving in some country are $800 billion, $700 billion, and $100 billion, respectively. Next, assume that disposable income increases by $80 billion, consumption rises by $60 billion, and saving goes..
In 2003, conservation groups paid western cattlemen to move their herds away from wild buffalo herds so that the buffalo would have more feed and not have to compete with the cattle. What has this action to do with regulation and the Coase Theorem..
Explain why a lump-sum government transfer can entice some workers to stop working (and entices no one to start working) while the Earned Income Tax Credit (EITC) can entice some people who otherwise would not work to start working.
The Boca Raton Company announces that if it reduces its price subsequent to a purchase, the early customer will get a rebate so that he or she will pay no more than those buying after the price reduction. a.If the Boca Raton Company has only one ri..
Suppose that the Fed's inflation target is 2%, potential output growth is 3.5%, and velocity is a function of how much the interest rate differs from 5%: %^V= 0.5 X (i-5). Suppose that a model of the economy suggests that the real interest rate is..
Illustrtae what does the agent choose if the terms are worse than actuarially fair.
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