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1. How does the elasticity of supply and demand affect the price ceiling's affect on producer and consumer surpluses?
2. If the price ceiling were removed, what would happen to the price of gasoline in the near term? Is it fair that the available gasoline would only go to those people who are willing and able to pay the higher price? In being willing to pay more, does this mean that these people value gas more highly? What ideas of fairness presented in your text do you think apply in this case?
3. Why do you think there has been no suggestion of imposing a price ceiling on gasoline given current events in this market?
What does your anticipated adjustment process imply about the CR for the construction industry?
What is the effect of an increase in the quantity of money What is the difference between real variables and nominal variables Are these variables affected by the quantity of money If so, how Use examples from the text, the South University Online..
Compute the short run total product, average product of labor and marginal product of labor for all numbers of L between 0 and 7.
What are the advantages and disadvantages of the oligopolistic structure? How would an increase in a monopolist's fixed costs affect its profit-maximizing choice of price and quantity?
Why does the assumption of independence of risks matter in the example of insurance? What would happen to premiums if the probabilities of houses burning were positively correlated? Can you think of a situation where they might be negatively corre..
Compute the sizes of the consumer and the producer surpluses at the equilibrium price and quantity derived in (1).
Describe how expected activity times and variances can be computed in a PERT network. Describe a situation in which a project manager would choose PERT for their project.
How does competition affect profits and prices? What causes some firms to enter an industry, and others to leave it?
Draw demand, marginal revenue and marginal cost curves. Calculate and show how much this firm will sell and what they will charge. Calculate producer surplus with monopoly and the consumer surplus with monopoly. How much would be produced if this wa..
Suppose a perfectly competitive firm is producing 300 units of output, P = $10, ATC of 300th unit is $8, marginal cost of 300th unit = $10, and AVC of the 300th unit = $6. Based upon this information, the firm is:
The present value of the gain from employing the new factory must be less or equal to $50 million and the rate of return from the new factory must be greater than 7%.
The company estimates the probability of no damage to be 0.60, the proof damage between $0 and $10,000 to be 0.25, and the probability of damage between $10,000 and $25,000 to be 0.12. If the company wants to make a profit of $200 above the expect..
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