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Explain why both strict liability and negligence (with the correct standard of care) are efficient when the appropriate action removes all harm to third parties, but only strict liability is efficient when there is residual harm. [Assume nothing that is not present in the problem.] What conditions not described in the problem above might exist to make strict liability inefficient?
What are some methods for improving the financing of the U.S. health care system. Are these methods realistic and achievable? Justify your answer with solid reasoning and appropriate references.
Illustrate what is Betty's threat value. If Arthur and Betty cooperate together in settling their disagreement, what is the net cost of resolving the dispute.
distinguishing feature of monopoly. average revenue (For a monopolist) is. true of the profit earned by a monopilist. Which of the following factors explain the difference in long-run profits earned by a monopolist and a perfectly competitive firm
The government wants to run expansionary fiscal policy (deficit spending) to achieve full employment. For this purpose, the government wants to provide each unemployed person with a low wage job. Calculate the amount of additional deficit spending (i..
From an economic standpoint, evaluate the effect of a minimum wage on the market for low-wage labor. Include the following:
Evaluate the following statement using a work-leisure model: "Given the wage rate, an individual will always prefer a job in which the worker, as opposed to the employer, selects the number of hours worked".
A petroleum drilling supervisor on an offshore drilling platform decides to add an extra six-hour shift each day to keep the drill rig running 24 hours per day. Determine whether the mananger is concern with a short-run or long-run production dec..
Research the following types of organizations "Nonprofit, For-profit, Political and Government and International", identify key concerns for each and provide example of each type of organization: What are some issues that concern International Organi..
We are using data on executive compensation and profits of 70 companies. Suppose the following model describes the relationship between executive compensation (compensation) (in $ millions) and the company profits (prof it) (in $ millions): log(compe..
The Shakespeare Theatre has a monopoly on productions of Othello in Washington, DC. They hire you to analyze whether o?ering a “young adult” discount could help increase pro?ts. After some economic analysis, you discover that the demand curve for Oth..
Sylvia lives in California and qualifies for the CalWorks program (California’s version of TANF). CalWorks participants can earn $225 per month without having their benefits reduced. Beyond $225, benefits are reduced by 50 cents for every dollar of e..
Suppose the money supply is $1 trillion. The FOMC decides to use open market operations to reduce the money supply by $100 billion. If the required reserve ratio is .05, what does the Fed need to do to accomplish the reduction? Illustrate your result..
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