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What are the characteristics that define incremental/do better innovation, radical/do different innovation, and existing frame/new frame innovation? Which innovation activity is the most risky, and why?
Explain how do you suppose the tickets were rationed. Sketch supply and demand curves for the tickets to each of the two games.
Compared to Netflix, Blockbuster had very little data on their customers, or understanding of their preferences or behaviors. Which Netflix advantage had the most impact on Blockbuster’s business model becoming disrupted?
Additional regulation in a sector of the economy is socially advantageous whenever the marginal benefit to society of additional regulation is less than, is the same as, or is greater than the marginal cost to society.
Explain why most market labor supply curves slope upward and to the right, even though individual labor supply curves are presumed to be backward-bending?
Provide an intuitive explanation of the Principal-Agent problem and discuss any mechanisms used to mitigate the problem. You should use the business owner-manager problem as an illustration.
(Karloff) Consider the following market for used cars. There are many sellers of used cars. Each seller has exactly one used car to sell and is characterized by the quality of the used car he wishes to sell. Let θ ∈ [0, 1] index the quality of a used..
Suppose there are only 2 nations, Atlantis and Pacifica, and only two goods, surfboards and kayaks. If Atlantis produces only surfboards, it can make 50 per day. If Atlantis produces only kayaks, it can make 75 per day. If Pacifica produces only surf..
What is the expected value and standard deviation of the safest investment strategy you can make by this means. What is the highest expected value you can achieve.
Derive the aggregate demand curve and plot it to scale. Show all of your work. Calculate the effect of an increase in government spending on GDP. Is the effect larger or smaller than in the case where consumption does not depend on the interest rate?..
An equipment rental firm purchased a new scissor lift to add to its rental fleet. The scissor lift cost $18,000 and is expected to have a useful life of 4 years. The salvage value at the end of the lift's useful life is estimated to be $4,000. determ..
Explain the pros and cons of using a change in the tax rate to achieve the desired increase in output. Be sure to thoroughly elucidate how the change will affect equilibrium prices, output, and unemployment.
Illustrate wow would the existence of such insurance affect the amount of clothing that people buy. How would you evaluate this change in behavior from the standpoint of economic efficiency.
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