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A perfectly competitive spinach industry is in long-run equilibrium. Now suppose that some consumers are getting sick by eating spinach that contain salmonella. Describe how this change will affect short-run economic profits. What will happen to the number of spinach growers in the long run? How will price and output in this industry adjust in the long run?
Use critical thinking to analyze the issue using economic concepts and theory learned in our class. Present two policy recommendations based on this issue. Use additional references to back up your arguments. Include at least one graph developed in t..
Why would a tax credit for mortgage intrest be worth more to lower income families than a deduction? Would you favor changing the benefit from a tac deduction to a tax credit? What other changes might you want to make at the same time? WHY?
Assuming that each choice results in the same production costs once installed, under what choice is the firm likely to encounter a greater likelihood that its competitors will also expand their capacities?
Consider how the globalization of markets and production has changed the nature of policy decisions. How are events in Europe and other parts of the world influencing the economy in China?
Illustrate what is the producer's profit-maximizing(loss-minimizing) output level. Illustrate what are the firm's economic profits.
What are possible opportunity costs of opening Arctic lands to private extraction of as-yet unavailable resource endowments?
Suppose a consumer's utility function is given by U(X,Y) = X*Y. Also, the consumer has $288 to spend, and the price of X, PX=16, and the price of Y, PY = 1. How much X and Y should the consumer purchase in order to maximize her utility? How much tota..
Define syncretism and discuss examples of it within South Asian Islam and Hinduism. Also, after reading this chapter how can you view Islam as a "plurality of traditions" (201) rather than as a single monolithic entity?
Why do you think Hollywood ha for many years, an infatuation with tales about triumph and success out of poverty and how does American poverty provide the conflict necessary for unparalleled drama?
What are the three most important attributes of successful organizations? Why? Is it more likely for an organization to display these attributes (to be successful) in an oligopoly than in monopolistic competition? Why or why not?
Illustrate what role does comparative advantage play in trade among member nations
Behavioral economists suggest that brand-loyalty, which can be a source of monopoly power for the producer, may be explained by consumers' tendency to have the:
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