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In professional sports, the decisions about TV contracts, salary cap, free agency, entry in to a new market are made by their respective entities like MBA, NHL, NFL, MLB and MLS. These entities operate rather closely like a cartel.
What are the advantages and disadvantages of breaking up these sport cartels? Explain.
Suppose this industry is perfectly competitive and is presently in long-run equilibrium. Suppose people start to prefer dogs as pets and cat ownership declines.
Maritime Insurance Company offers insurance policies for recreational boats. A typical policy will pay the replacement cost of $25, 000 if the boat is a total loss. If the boat is not a total loss but the damage is more than $10,000, the policy pa..
When thinking about the theory of the firm, shirking, and principle-agent problems, we can find analogous situations in our personal lives. Make a Power Point presentation (for sharing with the class) two personal situations to illu..
Sketch Sally's indifference curves and explain her consumption choices in term of marginal utility.
What is the current total investment? b) What is the current unintended investment? c) Is this an equilibrium outcome? d) What do the Keynesians say will happen to real GDP?
The drought in Oklahoma is causing cattlemen to sell off their cattle herds. How does this affect the supply of beef How does it affect the demand for beef worldwide How does it affect the demand for chicken
Illustrate what has occurred to change the demand for, or the supply of, the good or service, and market prices of those products or services.
Imagine that you are the Chair of the President's Council of Economic Advisors. You need to prepare a briefing for the president on the status of the economy. Write a 1-2 paragraph on how the economy is generally doing. (For instance, determine if..
When price is greater than average variable cost but less than average total cost at the profit-maximizing level of output, a firm should continue to produce the level of output at which marginal revenue equals marginal cost.
Briefly discuss and illustrate the circumstances under which the minimum wage would (1) not lead to unemployement, amd (2) not cause a reduction in the total earnings of low-wage workers who are still employed.
After natural disasters, such as hurricanes, some commentators point to 'bright-side'. It is, for example, often pointed out that natural disasters reason GDP for a region to spike upward during the post disaster cleanup.
The following is a list of figures for a given year in billions of dollars. Calculate the GDP and NI.
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