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Suppose that a computer software company controls the operating system market. Although the government knows that the price is higher than it would be in the presence of competition, it believes that such profits are crucial to incentivizing innovation in the high-tech industry, a policy goal of the government.
Which of the following policy options might most effectively enable the government to achieve its objectives in this situation?
Do nothing at all.
Regulate the pricing behavior.
Turn the company into a public enterprise.
Use the law to increase competition.
Suppose the fisher hypothesis holds for an economy that has an expected real interest rate of 2 percent. For each of the expected inflation rates of 0,2,4,6, and 8 percent, calculate the nominal interest rate and the after tax expected real intere..
Supply and Demand in the Cell Phone Market.
In markets economics, firms rarely worry about the availability of inputs to produce their products, whereas in command economies input availability is a constant concern. Why the diference.
q.suppose there are two types of men and two types of women goodbad and assume further that same-sex marriage is not
how must you consider the issues regarding diminishing marginal returns and economies of scale.
How does this export subsidy affect the domestic price of steel, the quantity of steel produced, the quantity of stell consumed, and the quantity of steel exported. how does it affect consumer surplus, producer suprlus.
Suppose that the U.S. government decides to levy a tax (such as an excise tax) on cola consumers. Before the tax, 20,000 cases of cola were sold every week at a price of $8 per case. after the teax,
Suppose 20 balls are placed in a bag. 10 balls are red, 9 balls are yellow and 1 ball is green. If you draw a red ball you must pay $10. If you draw a yellow ball you get $2. If you draw the green ball you get $100.
q1. suppose that all the necessary conditions exist for the realization of equal wage rates in every market of labor
q1. are there any hiring standards that should be avoided? identify them also explain why they should be avoided?q2.
godzilla and macrosoft produce software and operating systems respectively both at marginal cost 10. each firm has
Listing different orderings and coalitions is not going to work for this problem because there are too many possibilities, excluding you can use different tools which we have discussed in class.
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