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Consider a rancher-farmer economy. Assume that the rancher has no choice over how many cows to raise but either the farmer or the rancher (or both) can build a fence to eliminate the crop damage of $150. However, the costs of installing the fence are different: $200 for the rancher and $100 for the farmer. Without the fence, the rancher’s profit is $1,000 and the farmer’s profit is $350 (after subtracting the crop damage of $150).
Suppose the court decides to protect the farmer’s entitlement with a liability rule, so that without a fence, the rancher must compensate the farmer for the crop damage. Assume that the court can perfectly and costless estimate the amount of crop damage. Also assume that the cost of the fence is born by the installing party and is not reimbursed by anyone else. What are each parties profits?
Viennese artist Gustav Klimt's Portrait of Adele Bloch- Bauer was sold in New York for $135 million. Illustrate using supply and demand curve.
Compute the resulting dead weight loss (DWL) inefficiency from the monopolistic optimal outcome.
Compare and contrast direct finance and indirect finance which is more likely to have a larger share of the total financial market in a mature economy and the young economy why.
Compare the effects of an aggregate-demand-induced recession with an aggregate-supply-induced recession.
Explain how do you calculate the cost index using the nominal GDP to get the real GDP in billions
Two plants are emitting a uniformly mixed polllutant called gunk into the beautiful sky over Tourist Town. The city government decides it can tolerate total emission of no more than 100 kg of gunk per day.
Describe why this does not represent a violation of the law of demand. Which of the subsequent best explains illustrate what a forward contract.
Explain and graphically illustrate the effects of the tax cut on aggregate output, consumption, employment and the real wage.
How would you design a specific customized compensation plan for Agent-Principal (owners, managers also workers) which would address both increased productivity also decreased turnover.
Assume that the newspaper can't differentiate students from teachers and can only charge a fixed price per article.
q1. studies have fixed the short-run price elasticity for gasoline at the pump at -.20. suppose that international
The report on the mini literature review (3 journal articles) will be assessed on how well the journal articles are integrated, analysed, discussed and leading to the research questions_that you will use in the interview. A literature review is n..
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