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Over the last 30 years in the United States, the real price of a college education (i.e., after adjusting for inflation) has increased by almost 70 percent. Over the same period, an increasing number of high school graduates have sought a college education. (Nationwide college enrollments almost doubled over this period.) While faculty salaries have barely kept pace with inflation, administrative staffing (and expenditures) and capital costs have increased significantly. In addition, government support to universities (particularly research funding) has been cut.
a. College enrollments increased at the same time that average tuition rose dramatically. Does this contradict the law of downward-sloping demand? Explain briefly.
b. Use supply and demand curves (or shifts therein) to explain the dramatic rise in the price of a college education.
How many times would this fully insured person visit the physician?
Use technology and information resources to research economic problems and issues and write clearly and concisely about economic problems and issues using proper writing mechanics.
Suppose that demand for bagels in the local store is given by equation Q^d 300-100P. In this equation, P denotes the price of one bagel in dollars
A price discriminating monopolist produces two products that exhibit the following price elasticities of demand and does anybody can have a dominant strategy? Explain.
Imagine cell phones are simple and the only thing consumers care about is minutes. Suppose a monopolist wireless company says, "The cell phone and the first 6 minutes are free, and the price of each additional minute is $2." Now suppose your deman..
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"Suppose Y = $200, C = $140, G = $25, x-m = -5, and T = $25. What is Sp? What is I?" Here is the answer:Yd = Y - T | C + Sp = Y - T | Sp = Y - T - C,Sp = Y - C - T = 200 - 25 - 140 = $35,I = Sp + (T - G) + (x-m) = $35 I = $35 + 0 - 5 = $30
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Suppose that competition among several market makers forces the spread down to $2. How many goods are traded?
What makes the market of personal computers a good example of perfect competition and what you think are the most important competitive advantages in such a perfectly competitive market?
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