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"Indeed, it has been said that democracy is the worst form of government," said British Prime Minister Winston Churchill (1874-1965), "except for all those other forms that have been tried from time to time." Some people make the same claim about more market-oriented forms of economic systems. What do they mean? Do you agree or disagree?
Consider a monopolist in a market with linear inverse demand p(q) = 4 - q/2. The monopolist's cost function is c(q) = 2q. Write down the monopolist's profit function. Compute the profit-maximizing quantity and the corresponding price.
Contributed by Hamed Kashani, Saeid Sadri, and Baabak Ashuri, Georgia Institute of Technology
Find the present value of this project by using the Adjusted Present Value (APV) formula
Suppose an international development bank is deciding whether to use the head-count index or the poverty gap to measure the effects of a countrys poverty
A consumer splits their income equally between two goods. If the price of one good increases by 10% and their income increases by 5%, show that the consumer’s optimal consumption bundle will change despite them being able to afford their original bun..
Consider two firms facing the demand curve P = 50 - 5Q where Q = Q1 +Q2 . The rms cost functions are C1 (Q1 ) = 20 + 10Q1 and C2 (Q2 ) = 10 + 12Q2. If they collude, how much will each firm produce? What would be each firm's profit?
Discuss your power sources (and your co-owner of the property you two are trying to sell power sources) in this negotiation, and analyze how you can strengthen your power position
Draw the Production Possibility Frontier for this economy, label points on the frontier where resources such as labor, electricity and storage space.
Conclude by choosing a position for or against ethnicity-based jury nullification and defend your decision.
Discusses an example of a regulatory measure which was supposed to serve public interest, but in reality serves private interest.
A new machine would cost $18,000, have operating costs of $1,000 in the first year, and have a salvage value of $10,000 at the end of the first year. For the remaining years, operating costs increase each year by 15% over the previous year’s operatin..
What will happen in the international market for gold if news of war causes buyers and sellers to expect high gold prices in the future? Provide a brief narrative explanation.
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