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How are producers of the goods we consume supposed topromote societal well-being through the pursuit of profits?
2. what role does the use of capital and technology play inhelping the free market now?
Assume that x1 and x2 can take any value (0,1,2,3,4,5). The payoff to student i is 10 - xi if she gets an A and 8 - xi if she gets a B, i = 1, 2. Derive the strategies that survive the iterative deletion of strictly dominated strategies.
The data given below shows the situation in 2010 and 2011 if Fed does not use the monetary policy,
Suppose Sam's Savings Bank has the following balance sheet with all amounts in millions of dollars): Assets Liabilities + Capitol Cash 5 Transactions deposits 267 Deposits at Fed Res 10 Time Deposits 569 Gov Bonds 20 Subordinate Debt 38 Gov Bond A..
Firms like Papa John's , Domino's, and Pizza Hut sell pizza and other products that are differentiated in nature. While numerous pizza chains exist in most locations, the differentiated nature of these firms' products permits them to charge prices..
From the perspective of any individual in this population, what is the reduction in the probability of their death in any year from this policy? (Assume everyone in the population uses the road equally. In reality, the fact that this is not true m..
Assume that the gold-mining industry is perfectly competitive. Using a graph of the Representative Firm and a corresponding graph of the Market, illustrate a representative gold mine earning normal economics profits and illustrate equilibrium in t..
Suppose that the equilibrium quantity in the market for widgets has been 200 per month. Then a tax of $5 per widget is imposed on widgets.
Suppose that output increases to 209. Redo the calculations in (a) and (b). Explain (in terms of savings and investment) the reason for the interest rate change.
Illustrate graphically why someone paid an yearly salary might be likely to shirk if monitoring is incomplete at the firm.
Agree or disagree and describe: In monopolistically competitive market, firms that innovate successfully can increase their economic profits and lock in higher market shares over long run.
What impact would a change that shifts an economy's production possibilities curve outward have on the long run aggregate supply curve? How have improvements in computer technology affected production possibilities and the long run aggregate supply c..
Assume both the 1-year and 11-year spot rates unexpectedly shift downward by 2 percent. Illustrate what is the price of a forward contract otherwise identical to yours.
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