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1. Prior to 1982, AT&T kept local phone rates low by subsidizing them from long-distance profits. Was such cross subsidization in the public interest? Explain.
2. How would you put dollar values on the benefits and costs of truck safety regulations? Do befits exceed costs?
3. The Telecommunications Act of 1996 requires local phone companies to charge "reasonable' rates for transmission access. What is a "reasonable" rate?
4. How could a local phone or cable company reduce service quality if forced to accept price ceilings?
5. Should the Justice Department have approved the merger of American Airlines and U.S. Airways in 2013? Who gained and who lost from the merger
Explain why does a production possibilities curve bow out rather than forming a straight line sloping downward from left to right.
How income may change savings behavior
What is the major problem in achieving an efficient use of the world’s water? If there were a global market in water, like there is in oil, how do you think the market would work?
As a near-term solution, its engineers recommend a cooling technology known as an absorption chiller, which uses plain water as a refrigerant and semiconductors that cool down when charged with electricity. B&E is considering two options: Option 1..
How would such a subsidy affect a firm’s marginal cost curve? Explain.
Let us revisit GDP which we slightly discussed. What is the difference between a nominal from a real GDP? Would you rather live in a country with a high GDP and low growth rate or in a country with low GDP and a high growth rate? Please explain
Provide a personal example that you have witnessed in terms of inflation and what future factors will increase the GDP of the U.S., and what factors will decrease GDP?
What are the determinants for supply and demand? Explain each one in detail.
Given the following production possibilities curve: a. Does this production possibilities curve show increasing opportunity costs? Explain. b. What is the opportunity cost of moving from point I to point D? Explain.
In order to sustain economic growth, which is more important - total factor productivity or capital accumulation? Explain briefly
Solve for the price and quantity that the monopolist would choose to maximize its profit under the more advanced technology. And also calculate the resulting profit.
Read Incorporating demand-side aspects into regional policy. Discuss how the implications of this article could hold for individual states within the US. How do you see these concepts played out inNew Hampshire?
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