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True/False (explain your answer with reasoning or a graph)
a) Is there always welfare loss under a monopoly?
b) Is welfare loss always lower under and oligopoly than under a monopoly?
c) If a game has a nash equilibrium it is a dominant strategy?
d) If a game does not have a nash equilibrium it does not have any equilibrium?
e) If you are a borrower and interest rate goes down, will you become a lender?
f) Does asymmetric information always lead to adverse selection?
g) Do we always moral hazard in insurance markets?
Complete a SWOT (Strengths, Weaknesses, Opportunities & Threats) Analysis of a private, government funded or non-profit hospital within your state (Northwestern Memorial Hospital,IL).
Explain the Multiplier Effect. Try to explain it in some detail so that someone who did not know anything about economics would be able to gain a fundamental understanding of it. Use a visual aid to help the observer understand the concept. Should be..
Elucidate why the equilibria found in part (a) are only short-run equilibria. What will happen in the long run.
A product has an arc elasticity of -0.8. at a price of $7.00, 1000 units are sold per period. In order to sell 1200 units, what will the new price be. Illustrate what is the revenue at the old price ($7.00)and the new price.
Suppose you have $66,000 to invest. You’re considering Miller-Moore Equine Enterprises (MMEE), which is currently selling for $100 per share. You notice that a put option with a $100 strike is also available with a premium of $6.6. Calculate your per..
What are the positive and negative aspects of budget deficits and surpluses? What policy is best for today's economy? Explain your answer.
During large flu outbreaks (Think H1N1 in 2009), the demand for hand sanitizer usually increases dramatically (3-4 fold!). When this happens, should Johnson & Johnson increase production of their Purell hand sanitizer? Should it invest in doubling pr..
What is the present worth of the following cash flow stream? Assume 8% interest and an initial purchase price of $30,000 is included (4 pts)
Suppose OPEC members met and decided to increase their oil production (and thus lower prices) for six months. This change will cause many firms’ input prices in the U.S. to __________. This change in input prices will cause a _____________ aggregate ..
where P represents price and A is the number of weekly advertisements. Presently the theater advertises 125 times per week. Assuming this is the only theater in town, and its marginal cost, MC, is equal to zero,
Draw graphs with quantities of pepperoni pizza on the horizontal axis and quantities of anchovy pizza on the vertical axis to illustrate the following situations. In each case draw an indifference map (bunch of indifference curves) and make a little ..
Government A decides it wants to eliminate poverty and unemployment by immediately issuing 50,000 dollars/yr to all unemployed citizens. All said citizens receiving the 50,000 per year under this government are thereby not considered unemployed. Expl..
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