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There are problems faced by regulators in setting price for a natural monopoly. There are different regulatory options for setting prices: price equal marginal cost; price equal average cost. compare and contrast them. Identify the potential problems caused by each and assess the trade-offs.
Suppose Congress had chosen to both increase government spending and raise taxes by the same amount in 2009. What increase in government spending and taxes would have been required to prevent the decline in output in 2009?
What is the SAP (structural adjustment program)? What are the IMF-imposed “conditionalities”? Why did the IMF and World Bank imposed them upon Third World countries during both their debt crises and financial crises?
Engineers at a national research laboratory built a prototype automobile that could be driven 180 miles on a single gallon of gasoline. They estimated that in mass production the car would cost $40,000 per unit to build. The engineers argued that Con..
Please describe one item in your life for each of the given categories and then explain why: elastic demand. unit elastic demand. inelastic demand.
Economic theory would suggest that the profitability of an industry would be
Let X ∈ [0, 10] and y = f(x) = cx with c > 0. What is the slope of f(x)? Is it constant or it depends on x? What is the value of f(x) when x = 3?
Consider a market with one large firm and many small firms. The supply curve of the small firms taken together is S(p) = 100 + p. The market demand curve for the product is D(p) = 200 − p. The cost function for the large firm is c(y) = 25y. Suppose t..
Not long ago an employee came into my office asking for a wage increase. I responded by asking what increase in productivity the employee brought to the University in order to merit such an increase.
Alter Bridge Mfg., Inc., is currently operating at only 92 percent of fixed asset capacity. Current sales are $640,000. Fixed assets are $490,000 and sales are projected to grow to $730,000. How much in new fixed assets are required to support this g..
Discuss how your expected and disposable future income, after receiving your college degree, may change your saving and investment decisions and transactions in the loan able funds market
In recent years, the Social Security Administration has increased the retirement age from age 65 to age 67. Based on the concept of consumption smoothing, what impact is this change in the retirement age likely to have on the supply of loanable funds..
Picture a big shopping mall, but vacant, a property (Super Regional shopping mall) of 154,000 square feet has a market value of $ 14,000,000.00 ($90.58/sf). the property is located in Riverside in the state of California. But it is not so simple, thr..
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