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Often governments grant monopolies to firms to promote Research & Development or because having one supplier for a product makes more economic sense? Can you think of a specific example?
Developed produces two goods, manufactures and food, using three factors of production: capital, land and labor. The production of manufactures requires capital and labor, while the production of food uses land and labor. All the arable land is in th..
The Sharing Economy 1) Discuss the pros and cons of this disruptive business model. Is it good for job creation? Use a specific example(s) to support your answer. 2) Identify a market segment where you feel "collaborative consumption" is likely to be..
When marginal cost is rising, the average total costs: When the level of production is relatively low, the average cost per unit of output would ________ if output increased. Which statement about cost is correct?
1. Why can the distinction between fixed costs and variable costs be made in the short run? Classify the following as fixed or variable costs: advertising expenditures, fuel, interest on company-issued bonds, shipping charges, payments for raw mat..
EXplain how much output will each firm produce in the Stackelberg Equilibrium. What will be the market price. How much profit does each firm make.
Your the manager for a college football team. Assume you own the stadium and the variable cost per attendant is $0. You’ve been told by your in-house economist that you should set the price of tickets at $50 to maximize profit. Your football coach is..
Bill is thinking of investing in a Silicon Valley start-up. His von Neumann-Morgenstern utility-of money function is U(w) = 9+w-(w^2/100) where w denotes wealth measured in thousands of dollars (thus w = 1 means $1,000). Would a risk-neutral person m..
In an attempt to bring lenders and borrowers together following the financial crisis of 2008, the federal reserve made a large amount of new funds available to financial markets. Any of these loaned out by banks would be classified as __________ of t..
In the Clean Air Act as amended, Congress allowed California, which has serious problems with air quality, to adopt its own standards for emissions from cars and trucks, subject to the approval of the Environmental Protection Agency (EPA) according t..
What is the difference between currency forwards and currency futures?
Compare economic performance in an oligopolistic market with that in a purely competitive one. Is oligoploy the best market structure for rapid technological development? Why or why not?
Construction-based business of your choice and explain stakeholder theory to illustrate the primary interests of the stakeholder groups and identify any areas of potential conflict between the stakeholder groups.
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