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You are an assistant in a storefront legal office, a summer employee planning to enter law school in the fall. You are assigned to do the initial interview of a new walk-in client. The client wants to sue her landlord for negligence in connection with severe injuries she sustained on the staircase in her apartment house. However, you quickly find out that the injuries are fictional. You know that the tendency in these cases is for the client to collect a small amount anyway (it's cheaper for the landlord to pay off than to fight). One way that your office stays in business is on its share of just such suits. What do you tell the client? What do you tell the attorneys.
An industry consists of a dominant firm with costs C(Qd) = Qd and 8 identical fringe firms, each with costs c(q) = 1 + q^2. Market demand is Q = 20 - p. What is the supply schedule for a fringe firm in the long run? Sketch the supply. (You would need..
q. the following is a report from a not-very-efficient bls survey taker there were 90 people in the houses i visited.
Graph the demand curve on a standard supply and demand graph. What is the quantity demanded of corn at a price of $6.00 per bushel? at $4 per bushel? Using the midpoint formula for the price elasticity of demand, calculate the price elasticity of dem..
Would it be more effective to tax in the different rate between the different states based on how much negative externality it were cause?
Identify at least one important entrepreneur that you would consider an "entrepreneurial legend" and state why you consider the person to be (or have been) exemplary. You must also identify at least one economic decision made by this entrepreneur tha..
What is interested and why do we have it? Explain why taking interest rate down to zero, i.e., no interest rate, may stoke inflation, and hence, removing the purchasing power of money and ruining the economy down the road.
Consider an equilibrium in which someone is using the good. Is social welfare maxi- mized at this number of users, or would it go up if there were more users, or would it go up if there were fewer users? .
The profitability of a bank depends on several different factors. Banks manage their assets in a variety of ways. Explain the importance of “liquidity management”? What is the concern of the bank in regard to the liquidity of its assets? Bank Manage..
Suppose that the world price of oil is roughly $80 per barrel and that the world demand and total world supply of oil equal 34 billion barrels per year (bb/yr), with a competitive supply of 20 bb/yr and 14bb/yr from OPEC. Using this information, deri..
If one draws MC curves pre and post innovation as well as the Marginal Revenue line for a monopoly and the MR in a competitive situation.
Determine the current amount of money that must be invested at 12% nominal interest, compounded monthly, to provide an annuity of $10,000 (per year) for 6 years, starting 12 years from now. The interest rate remains constant over this entire period o..
Why is organic food a positional good? What other ways do wealthy people have an advantage in avoiding pesticides? How does this relate to global inequality? How are organic foods produced, marketed, and sold in a capitalist society? Compare and cont..
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