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How does a natural monopoly become regulated? What is the way that the pricing should take place for the monopoly? How much profit should be allowed to be made?
Assume that demand for a commodity is represented by the equation P = 10 – 0.2 Q d, and supply by the equation P = 2 + 0.2 Qs where Qd and Q s are quantity demanded and quantity supplied, respectively, and P is the Price. Use the equilibrium conditio..
Combinations of debt-equity financing mean that a weighted average cost of capital (WACC) percentage rate (%) results. What is the WACC % for a purchase made with 1/3rd of the total purchase made with a credit card (debt financing) at i=24% per year..
A monopolist firm serves 6 consumers. Each of the consumers only buy one unit of the good. Two consumers buy one unit if the price is lower or equal than $100 and the other four consumers buy one unit if the price is lower or equal than $10. The firm..
Write down a utility function that represents Britney's preferences over dresses also hats.
Compare the classical labor theory of value to the neoclassical utility theory of value. How do they differ both in assumptions and implications? Please cite volume and page numbers from Capital when appropriate.
Suppose an individual’s utility is expressed as U=x^(1/2)y^(1/2)and their constraint is represented by the following: 2x+3y=B=100. What level of x and y should the individual consume to maximize utility? What is utility at the optimal level of consum..
If a nonbinding price floor is imposed on a market, then:
Suppose a country has net exports of 40, transfer payments of 20, net investment income of -15, and a balance of payments surplus of 10. Find the country's current account balance and capital account balance.
Explain whether transfer payments, such as Social Security and unemployment compensation, are counted as government spending in calculating GDP.
How and why can the decision of U.S. citizens to save money cause economic problems for the economy? So, if the economy is in a recession, who is at fault: business, households, or government?
One common criticism in the optimal taxation literature is the specification of the social welfare function. The optimal taxation literature (I have the Mirrlees framework in mind) relies on first specifying a social welfare function. what kind of po..
Discuss the Counter-Reformation. How did the Catholic Church respond to the Reformation in both positive and negative ways? Give some examples of the measures it took. Were they successful?
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