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Describe an example of a real-world industry or market that would be considered by economists to be a natural monopoly.
a. What characteristics of the industry make it a monopoly?
b. What is the impact of the monopoly power on its customers?
c. Why might government want to regulate natural monopolies?
d. How might such regulation be structured?
If a tax were to be imposed on one of these items, for which item would the tax be the most efficient.
Explain why quality became the most important issue facing American business in the 1980s. In addition to economic competition from Japan, what other factors may have contributed to the importance that quality has assumed?
In Role of Government in Regulating Business Ethics and "Business Ethics: The Law of Rules, the authors seem to argue that overreaching laws and regulations do not facilitate ethical behavior, and indeed might have the opposite effect. Using these ar..
Calculate real GDP in each year, and the percentage increase in real GDP from year 1 to year 2 using year 1 as the base year. Next, do the same calculations using the chain-weighting method.
How effective would these actions be if banks remained re- luctant to make consumer loans while households remained reluctant to obtain loans? Briefly explain.
Suppose that a firm's production function is Q= min{K,L} . Currently, the wage is w= 8 and the cost of capital is r=8. What is the minimum cost method of producing Q=40 units of output? Suppose that wages fall to w=4. Keeping total cost the same, wha..
This is largely because the Chinese government makes sales in China contingent on a company's willingness to locate production there. The government wants Chinese companies to learn modern management skills from other international companies.
The entire principal of the borrowed amount of $10,000 will be repaid in 2 years. However, the quarterly interest of $330 must be paid every 3 months. Find the nominal annual interest rate that you are paying.
Elucidate how an economist could utilize the slope of the yield curve to analyze the probability that a recession will occur and why the spread may matter.
Review options available for managing this foreign-currency liability. Is there any reason to prefer one course of action over another.
Elucidate why from an economic point of view towing a car illegally parked rather than just ticketing it provides a better incentive.
Outline and describe in order of sequence the key items that led to the War of Independence. Explain why the navigation laws were so important to England. Explain the whys of the policy of salutary neglect.
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