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What does it mean for a good to be non-excludable in theory one may worry that such a problem could completely shut down private markets. How did we deal with that in designing a private environment for the public goods case so that this doesn't happen how and why did we use game theory in this design
If Rhine Company ignores possibility that or firms may enter its market, it should set a price of $10,000 for its product, which is a power tool. Explain how can firm's manager extend planning horizon.
Suppose there is a decline in marginal costs for one member of a cartel. What impact will this have on the incentive of that firm to cheat on the cartel agreement? Explain.
If we accept Marx's labour theory of value, we run into a different problem: if a working day of 8 hours creates same amount of value in a highly mechanized industry as in an industry with few machines, why do capitalists introduce machines.
Suppose the authorities are considering either a tradable emission permit system, in which they give half the permits to each firm, or a tax system. If both systems work perfectly, how much will the firms have to pay, in total, for pollution reductio..
Consider a free market with demand equal to Q = 60-4P and supply equal to Q=2P. What is the value of consumer surplus? What is the value of producer surplus?
q.suppose you elasticity of demand for your parking lot spaces are -0.5 and price is 20 per day. if your mc is zero
A basic assumption for comparing the straight-line production possibilities curves for two nations is that the production possibilities curves reflect.
The Bureau of Economic Analysis and access the BEA interactively by selecting "National Accounts" and then "National Income and Product Account Tables." Select "Frequently Requested NIPA Tables," and find Table 1.1.1 on GDP.
Suppose you are the owner-operator of a gas station in a small town. Over the past 20 years, you and your rival have successfully kept prices at a very high level. You recently learned that your rival is retiring and closing his station in two weeks...
At which interest rate will an individual be indifferent between receiving $50 per year every year forever (starting one year from now), and receiving $1000 today?
An unusually cold January in Florida destroyed entire fields of tomatoes. Florida’s growers are shipping only a quarter of their usual 5 million pounds a week. The price has risen from $6.50 for a 25-pound box a year ago to $30 now. - Source: USA Tod..
The marketing manager for Mountain Mist soda needs to decide how many TV spots and magazine ads to run during the next quarter. Each TV spot costs $5000 and is expected to increase sales by 300,000 cans. Each magazine ad costs $2,000 and is expected ..
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