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Many professional sports athletes have incentive clauses in their contracts. These indicate tha: a) the team owner has asymmetric information b) the athlete might engage in moral hazard, which the team owner wishes to avoid. c)the athlete might engage in adverse selection, which the team owner wishes to avoid. d) the athlete has stronger negotiators.
Utilize this concept to construct an example in which a risk-averse individual prefers a gamble to a certain amount of money.
The market demand curve for the industry is D(P) = 240 ? P/2. At the equilibrium market price, each firm produces 20 units. What is the equilibrium market price, and how many firms are in this industry?
Provide examples of two industries with different time frames for the short run. Clarify why this is the case.
For a typical firm producing 100 units of output, short-run marginal cost is constant at $65, average total cost is $95, and average fixed cost is $30.
Write down an explanation for an interrogatory senator outlining how your expansionary acts would operate and what would be the effects on the economy.
q. suppose that the federal reserve lowers the required reserve ratio from 0.10 to 0.05. how does this affect the
In case of conflicting IP rights, could firms bargain to attain efficient outcomes. Is re room for entry if consumer welfare is not being served.
q.assume that we have a expenditure function of the form c 220 0.9timesyp where yp is permanent disposable income.
Illustrate what are the major determinants of price elasticity of demand. Use those determinants and your own reasoning in judging whether demand for each of the following products is probably elastic or inelastic.
Discuss how supply and demand would be affected under each of the four degrees of competition (pure competition, monopolistic competition, oligopoly, and monopoly). Give specific examples to support your response.
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,
The companys marketplace department estimated a linear demand function for Border's picante sauce:
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