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Laws that prevent price-gouging after the occurrence of a natural disaster are a practical example of which of the following market interventions?
a. Third-party payer markets
b. Quantity restrictions
c. Price floors
d. Price ceilings
Sexual violence in jails and prisons has been discussed in the textbook in several chapters. This unit’s required reading also discusses it. Do you think that the new Prison Rape Elimination Act will make an impact in curbing this problem? Does the n..
q. assume you have been hired as a managing consultant by a company to offer some advice that will help it make a
What are the components of aggregate expenditure. What determines the slope of the aggregate expenditure line.
Given the following payoff matrix, (a) indicate the best strategy for each firm. (b) Why is the entry-deterrent threat by firm A to lower the price not credible to firm B? (c) What could firm A do to make its threat credible without building exces..
Assume that Dr. Slight has $300 to spend on goods X and Y. Good X costs $5 per unit and Good Y costs $3 per unit. Dr. Slight combines X and Y using a very strict ratio to derive utility. He can only increase his level of wellbeing by receiving more o..
Explain why a nation that imposes tariffs on imported goods may find its welfare improving should the tariff result in a favorable shift in the terms of trade.
A firm is currently producing 80 units of output. At this level of output produced, P=150 and ATC=120. Also assume that MC=130 and MR is constant at all output levels and equal to 150. Is this firm making profits? If so, what are these profits? Is th..
You invest in a fast food restaurant on Rt. 13 in Dover, Delaware (Hey, it seemed like a good idea at the time). You were required to invest $300,000. One year passes. You decide to sell your business. During the year you were paid $25,000 as your % ..
Explain how many ships should be produced month if world chip costs are $62 per chips. Forecast the HSE's profit at this output level.
For out Back Steakhouse, seating capacity is limited in the short run.
If lenders expect a higher rate of inflation, then
Assume that the long-run aggregate supply curve is vertical at Y = 3,000 while the short-run aggregate supply curve is horizontal at P = 1.0 (P = 1.0 is the SRAS Curve, in other words). The aggregate demand curve is Y = 3(M/P) and M = 1,000. If the e..
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