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Why do economists tend to react in a hostile fashion to prposals for quotas, or for price ceilings and price floors? Recall and describe case(s) in which such interferences with the market equilibrium and preferable to the alternative, and explain why such interfereneces were preferable.
A college student is buying a new car, which costs $18,000 plus 7% sales tax. The title, license, and registration fees are $600. The dealer offers her a financing program that starts with a monthly payment of $300, and each successive payment will i..
You are the manager of a monopoly. A typical consumer's inverse demand function for your firm's product is P = 250 − 40Q, and your cost function is C(Q) = 10Q. Determine the optimal two-part pricing strategy. How much additional profit do you earn us..
Compare also contrast the four marketplace models in terms of the profit-maximizing.
Write about the long-term system. What is it? How does it work? Who pays for it? Who gets insurance? As much as you can - Passive Euthanasia in Sweden: This is the thing about helping people who are very sick and want to die.
Where Qx represents thousands of donuts; Px is the price per donut; Py is the average price per donut of other brands of donuts; and Ax represents thousands of dollars spent on advertising Newton’s Donuts. The current values of the independent variab..
Using the supply and demand analysis of the market for reserves, indicate what happen to the federal funds rate under the following situations: The Treasury has just paid a large bill to defense contractors and as a result its deposits with the Fed f..
This question may require some research. The US-Mexico Bracero Program was eventually opposed by:
Using the tools of supply and demand and the competitive market, demonstrate graphically and explain the difference between a "gas crisis," in which prices are rising, and a "gas shortage."
A small consulting firm is only interested in hiring College graduates (denoted by S), but it does not know how many it should hire in order to be profit maximizing. Assume there is a competitive wage of $20 per hour and the production function is F(..
Which policy monetary or fiscal would be more appropriate to improve the situation. Explain your choice clearly using figures.
Consider the traditional farm problem: Food can be viewed as a necessity, and overall has a price-inelastic demand. Suppose that 10% of each farmer's crop were destroyed. What is the effect on farmer income? If the price elasticity of demand is -0.5,..
State the appropriate monetary policy which the Bank of Canada should be operating, given the above situation.
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