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The labor demand curve in a perfectly competitive factor market is the horizontal sum of all firms' _____ product of labor curves.
marginal physical
marginal
value of the marginal
average physical
A major problem for the implementation of privatization during the early years of transition in the formerly planned socialist economic systems has been
What is adverse selection? How does its existence affect the market for health insurance? What are some ways insurance companies protect themselves from adverse selection?
Distinguish between comparative advantage and competitive advantage (may take some research on your part). Which is used by economists as a justification for international trade? Why?
Consider an economy with its production possibilities represented by. Suppose the economy starts with a capital stock at time t = 0 equal to 1 unit. Write down the values of gross investment, net investment, capital, consumption, and output observed ..
A any given interest rate, business become very optimistic about the future profitability of investment spending. Assume the budget balance is zero.
Explain how supreme as well as comparative advantages were used in your simulation.
In which of the following situations is the Coase theorem likely to apply? Explain. The neighbor who lives below you in the apartment building loves to play old John Denver records at loud volume early in the morning. In fact, his favorite song seems..
Give an example of a government created monopoly. Is creating this monopoly necessarily bad public policy?
Steve believes that Monica has a 25% chance of be Illustrate what is Steve's expected utility from buying.
What can you infer about expected change in the exchange rate between the Canadian dollar and the U.S. dollar? A friend proposes a get-rich-quick scheme.
Ilustrate what is the market price and level of each firm's output in the short run. How much profit does each firm make.
Suppose that a firm's production function is Q= min{K,L} . Currently, the wage is w= 8 and the cost of capital is r=8. What is the minimum cost method of producing Q=40 units of output? Suppose that wages fall to w=4. Keeping total cost the same, wha..
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