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What did classical economists assume about the flexibility of prices, wages, and interest rates? What did this assumption imply about the self-correcting tendencies in an economy in recession? What disagreements did Keynes have with classical economists?
Dot.com Products, offers storage containers for fine china on the Internet. The corporation is the low-cost retailer of these quilted boxes with fixed costs of $480,000 a year,
During the period of airline regulation, the government set airline fares and regulated an air carrier's entry into and exit from particular markets.
A firm wants to lease some land from you for twenty years and build a warehouse on it. As your payment for the lease, you will own the warehouse at the end of the twenty years.
Utilize a various example from homes and cars. Be creative. We make these kinds of choices everyday.
The New York Times (Nov. 30, 1993) reported that "the inability of OPEC to agree last week to cut production has sent the oil market into turmoil[leading to] the lowest price for domestic crude oil since June 1990." a. Why were the members of OPEC..
Determine the basis of the kinked-demand model? Describe the reason for the gap in oligopolist's marginal-revenue curve. How does this model explain price rigidity in oligopoly.
Utilize the principle of contracting-out to provide an economic argument for contracting-out or outsourcing some government-provided service or aspect of a firm's production.
Illustrate what are the most important concepts you can learn in Economic Theory classes. How can you apply them to your life. What difference can these concepts make in your everyday life.
The price elasticity of demand for a textbook sold in the US is estimated to be -2.0, whereas price elasticity of demand for books sold in overseas markets is -3.0.
What problems arise in estimating whether an equal income distribution is fair or not? Diuscss the difference between income and wealth?
Describe by what percentage would a 10% rise in the price reduce the quantity demanded, assuming price elasticity remains constant along the demand curve.
a. Explain how asymmetric information about a hidden action or a hidden characteristic can lead to moral hazard or adverse selection. b. Discuss a few tactics that managers can use to overcome these problems.
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