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Suppose you own a movie theater and most of your costs (the film rental, security, the land rental, etc.) are independent of how many people show up. What is likely to be the point elasticity of demand at the price you decide to charge?
Suppose you purchased a ticket to a concert for $30 a month ago. Last week someone invited you to a party on the same night as the concert. You would much rather go to the party than the concert. You have tried unsuccessfully to sell the concert tick..
What is the fundamental difference between a dominant strategy (equilibrium) & a Nash equilibrium? Both antitrust policy & economic regulation deal with monopoly. What distinguishes the two approaches? How does government decide to use one form of r..
Middle adulthood covers the time period between 30 to 65 years of age, and various physical changes are manifested during this time period. Describe two to three physical changes manifested in middle adulthood. Be sure to choose changes that others h..
Explain the terms 'compensating variation' and 'equivalent variation' of a price change with diagrams. Under what circumstances would the two measures coincide?
Consider the open economy model. Suppose that U.S. investors decide to invest more in Canada. What happens to the real interest rate, the real exchange rate, the net capital ouflow, and the net exports in Canada and in the U.S.?
As marketers increasingly tailor marketing programs to target market segments, some critics have denounced these efforts as exploitive. They see the preponderance of billboards advertising cigarettes and alcohol in low-income urban areas as taking ad..
Suppose savers either buy bonds or make deposits in savings accounts at banks. Initially, the interest income earned on bonds or deposits is taxed at a rate of 20%. Now suppose there is an increase in the tax rate on interest income, from 20% to 25%...
If a major sports star were to move into your neighbourhood, what would you expect to happen to the neighbourhood's "average" income?
We discussed the possibility that a startup firm in San Francisco plans to 3-D print rhinoceros horns that are indistinguishable from real horns. Assume they are able to produce these horns cheaply. If successful, what will happen to the market price..
Suppose the European Union (EU) is investigating a proposed merger between two of the largest distillers of premium Scotch liquor. Based on some economists’ definition of the relevant market, the two firms proposing to merge enjoyed a combined market..
Identify the four factors articulated by a federal judge in 2009 for determining whether a government agency as sufficient “control” over a document to render it an “agency record” for purposes of the federal Freedom of Information Act.
Representative consumers have the utility function U(C,Ls) = log(C) + log(1- Ls). Representative consumers have labor endowment of 1. So Ls must be less than 1. Write down the budget constraint of the representative consumer. Write down the maximizat..
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