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Can an oil company raise the price of its gasoline to cover the costs of a huge oil spill for which it is liable? What would happen if ExxonMobil, for example, raised the refinery prices of gasoline at a time when other refiners were not raising their prices?
10 consumers, ranked by their value for a network product v = 1...10, are deciding whether to connect to the network. If there are n people on the network, including oneself, then a consumer's willingness to pay equals n x v. What is the highest pric..
Given a downward sloping demand curve, an increase in price is shown graphically as:
Illustrate what economic cost will an owner of a family-run business or farm likely overlook when computing their "profits".
There are three primary branches of government in the United States. For each of the three branches, describe how members of the branch are determined and the general functions and powers of the branch. What do you believe is most important for the p..
Write the numerical formula for the LM curve? What is the equilibrium level of r?
Three men claim to be the fastest gun in the West. To see who is right, they agree to meet at a desolate location in a desert. On a circular, cobblestoned area that is roughly 50 yards in diameter, each stands at the perimeter such that each man is e..
Patrick chooses to use his time ‘free-time’: (a) working out or (b) reading. Patrick currently has 20 hours a week to allocate to these two activities. It takes Patrick 1.5 hour to work out and .5 hours to read. Patrick enjoys both activities, Draw P..
Suppose that the so-called “new normal” sluggish economic growth of the last several years is the economy’s real potential, and not the higher growth rate of years past. What does this imply about how accommodative the Federal Reserve has been (and s..
A firm has a production function represented by: q=L^(.75)K^(.25) Find a function for how much capital and labor a firm should hire to produce a given level of production in terms of the price of labor, w, and the price capital, r. Suppose w=15 and r..
The competing concepts under which organizations have conducted marketing activities include: the production concept, product concept, selling concept, marketing concept, and the societal marketing concept. Identify examples of companies (preferably ..
What results in a shortage of oranges?
A political commentator argues: Congress and the president are more likely to enact an expansionary fiscal policy than a contractionary fiscal policy because expansionary policies are popular and contractionary policies are unpopular. Agree because e..
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