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Question :Jim sees commuting by bus and T as perfect substitutes (U = T +B), that is, he would exchange one commute by bus for one commute by T. The price of a bus ticket is $1.50 and the price of a T ticket is $2.00.
Jim has $6.00 to spend on commuting.
What is Jims best affordable choice? By how much can T ticket prices increase without making Jim worse o?
Consider another policy where the government could impose a price ceiling p on the monopolist. If the government were interested in maximizing social surplus, what would be the optimal value of p when considered from the point of view of the gover..
For a developing country to grow, it needs capital. The major source of capital in most countries is domestic saving, but the goal of stimulating domestic saving usually is in conflict with government policies aimed at reducing inequality
How would an increase in the world price of oil affect the amount of frictional unemployment. Is this unemployment undesirable. What public policies might affect the amount of unemployment caused by this price change.
Crew Brew produces a popular brand of beer in its mini-brewery located on a small river in Wisconsin. It uses a special formula, combined with the fresh water from the local stream, to produce a drink popular with local folks and tourists who visi..
1 . Based on the game, how did the simulation show the use of monetary policy to control both unemployment and inflation? How do Federal Funds Rate affect unemployment and inflation based on your experience with the game?
Two employees will be hired at $10.00/hour/employee (including overhead and benefits). Each employee will work an average of 170 hours per month. The average revenue per customer is estimated at $7.00. The variable cost of serving each customer is..
explain why a capitation payment system might provide incentives for physicians to be more efficient than they would be under traditional FFS systems. What incentives exist under a capitation system for providers to provide the appropriate quality..
Choose an Oligopoly and describe the industry and explain the general pattern of change of the particular market model and hypothesize the basic short-run and long-run behaviors of the model in the industry you have chosen in a "market economy."
Suppose there is a market for an industrial compound, Weon. This industrial compound is used as an input for production of cleaning agents.
a statewide sample survey is to be made. first, the state is subdivided into countries. Seven countries are selected at random and further sampling is concentrated on these seven countries. what type of smapling is this
Pass laws prohibiting children from working in labor market X. Require a license to work in labor market X. Increase tariffs on imports that compete with labor market X employers.
How does industry-level price elasticity of demand shape the opportunities for making profit in an industry? How does the firm-level price elasticity of demand shape the opportunities for making profit in an industry?
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