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Which of the following is the correct name for the idea that certain firms prefer government regulation because regulation shields them from the pressures of competition and, in effect, guarantees them a regulated profit. a. The public interest theory of regulation. b. The structuralists’ theory of monopoly. c. The legal cartel theory of regulation. d. The public regulation theory of natural monopoly.
Find the demand for L and R. (Hint: Use your result from part 3 and the budget constraint.) Now assume that the price of right shoes increases. What will be the substitu- tion eect from this price change? Explain.
All the workers in a factory have the same utility function u(x1, x2) = x1x2, earn the income of 12 and face the same prices p1 = 1 and p2 = 1. What is the optimal consumption bundle for the workers? What utility do they obtain?. Graph the indifferen..
Stores that sell wedding dresses do not typically permit photos, and do not have tags in the dresses that would identify the manufacturer and style type. What is the purpose of these rules? Suggest one other way of accomplishing the same objective.
q1. why might a company use an indirect cost discrimination scheme versus direct cost discrimination?q2. starting with
Juno Manf. Company has decided to build an expansion of its manufacturing facility that will cost $63,022. It has arranged thru the small business association to borrow $36,281 from Allied Bank at an annual interest rate of 6.27%/yr. It will use mone..
It is generally expected that an economic downturn will lead to an increase in inflation. Full employment output is defined as the output that can be achieved if everyone in the labor force has a job. According to the Keynesian model, injections will..
Which of the following situations is likely to involve adverse selection?
How do legal restrictions on practice for nurses and physicians tend to affect the observed elasticity’s of substitution? Would elasticity tend to be higher if legal restrictions were removed? Would quality of care be affected?
Why would cash transfers typically be preferred by recipients over in-kind transfers? What are the pros and cons of each from a government perspective? Respond to at least two of your classmates.
Layton Tire and Rubber Company wishes to set a minimum mileage guarantee on its new MX100 tire. Tests reveal the mean mileage is 67,900 with a standard deviation of 2,050 miles and that the distribution of miles follows the normal probability distrib..
What is the impact of the shrinking world on whether small to medium sized businesses should engage in international trade.
What is economics? What role does economics play in your personal and organizational decisions? Provide an example of the role of economics in decision making
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