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1. Why do rent ceilings lead to shortages and black markets?
2. Some people assert that protection from foreign competition prevents rich countries from exploiting developing countries. What is this argument in more detail and what is its flaw?
3. What are diseconomies of scale and why might they occur?
The demand function for a firm’s product is Q = P^(-3). The firm’s marginal cost of production is constant at MC(Q) = 12. Calculate the elasticity of demand, as a function of Q. Based on your answer to (c), what is the firm’s profit-maximizing price?
"The Federal Reserve should be independent from political pressure in designing and implementing monetary policy."
Which of the following Fed actions will increase bank lending?
You have borrowed $25,000 at an interest rate of 16%. Equal payments will be made over a three-year period. (The first payment will be made at the end of the the first year). What will be the annual payment?
Daniel Dynamite runs a high end car wash called “Daniel’s Car Wash” … he’s not very creative. The car wash market is very competitive and Daniel has no control over the prices that he can charge. Concerned that he is leaving money on the table, Danie..
The graph above depicts a situation where, if the market demand for the product increases, the prices of the resources used by the firms in the industry would
A leading organization, inspired by the Grameen bank, is attempting to provide loans to small farmers. it is leading to farmers in groups of two. Explain three reasons why a strategy of group leading may be better than a strategy of lending to indivi..
In her keynote address at the 10th Annual Global Antitrust Enforcement Symposium, what did Chairwoman Ramirez say about using broad measures of industrial concentration—such as the HHI—to evaluate the implications of a proposed merger on competition ..
How do these tools (payoff tables and game forms) help decision-makers to avoid incomplete thinking and over- inclusive thinking in their judgments?
A firm has $1.5 million in sales, a Lerner index of 0.57, and a marginal cost of $50, and competes against 800 other firms in its relevant market.
Look at Table 10-1 again, and now assume interest rates in the market (yield to maturity) increase from 9 to 12 percent. What is the bond price at 9 percent? What is the bond price at 12 percent?
Describe the process of decision analysis with probabilities. Make sure to talk about the expected value approach, decision trees, sensitivity analysis, and how sample information may be used to revise and improve the decision analysis. Feel free to ..
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