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The State of Wyoming spends about $300 million dollars per year on higher education, and also provides generous Hathaway Scholarships. Does higher education provide enough positive externalities for that state subsidy to make sense economically, or should the provision of higher education just be left to the market?
at least one page excluding tables, figures and references. Discuss both sides of the issue, and support your arguments with facts. You don't need to draw a conclusion. You do need to properly cite references for the facts that you cite.
For the argument in favor of state subsidies, draw (by hand is OK, but make sure it's neat) a supply and demand diagram that shows the positive externality, the effect of the subsidy, the market outcome, and the socially optimal outcome.
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Suppose that two years ago, you purchased a Jeep Wrangler SE 4WD with a soft top for $16,500 using five year interest-free financing.
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Given a perfectly competitive firm in the input and output markets where: P0 = exogenous price, Q = f(K0 , L) where dQ/dL > 0 and d2Q/dL2
Illustrate what would be a monetary policy prescription to reduce or eliminate deflation. How would deflation affect your business or a business you are familiar with.
Suppose you are an advisor to President Obama. Illustrate what fiscal policies would you put in place.
Suppose Gillette makes razors and blades. The marginal cost of producing blades is 1 and assume the marginal cost of producing razors is 5. Gillete has a monopoly in the razor market, but the blade market is competitive.There are two types of cons..
Why would the firm price it differently in different countries. Illustrate what do you think will happen to the price over time.
Discuss why the number of children that a family has may differ between an Industrial Society and a Third World Agrarian Society.
Illustrate what is more important for them to monitor and target, inflation or interest rates.
Suppose that a firm maximizes its total profits and has a marginal cost (MC) of production of $8 and the price elasticity of demand for the product it sells is -3. Find the price at which the firm sells the product.
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