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1. What is the major problem in achieving an efficient use of the world's water? If there were a global market in water, like there is in oil, how do you think the market would work? Would a free world market in water achieve an efficient use of the world's water resources? Explain why or why not.
2. Under what circumstances, and why, would the government be opposed to a merger of two firms? How does the Justice Department decide which mergers to challenge?
3. Explain the difference between fixed-production technology and variable-production technology. Should the government set a goal of reducing the marginal social cost of pollution to zero in industries with fixed-production technology? Should they do so in industries with variable technology?
4. What is the "regulatory dilemma"? That is, what trade-offs do regulators have to consider when deciding how to control a natural monopoly?
5. What is the underground economy? What is the impact on the underground economy of instituting a tax on a certain productive activity?
Assume that the demand curve for apples is given by Qd = 140 - 5P, where Qd is number of pounds demanded per year and p is the price per pound. The supply of apples can be described by Qs = 40 + 3P, where Qs is the number of pounds provided.
What will be the immediate impact on wages in each of the regions in the short run (before any migration between the North and the South occurs)?
Each class member shall prepare a written report concerning the performance of a company of their choice and based upon observation period, offer forecast of companies' future sales and revenue
Discuss the opposing arguments as to whether consumer sovereignty should prevail in medical care.
The Interior Department recently announced that it will increase the entrance fees at Yellowstone National Park in order to increase park revenues. The Interior Department must believe that
Suppose that you are the only seller of paper in the market, and you know that John already has a printer, how much will you charge him for the (100 units of) paper?
Discuss the various ways governments can handle externalities, such as noise from a local airport or a barking dog or building of commercial office space or an industrial building in a residential area?
Assume that someone told you that an increase in price of DVD players caused the decrease in demand for DVDs. Is this what you would predict? Why or why not?
Problem based on Oligopoly and demand curve, Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?
What is the short run shut down price for each firm and how does this short run shut down price differ from the long run shut down price?
Most of us participate in the economy every day. As households, we can provide labor to companies or government in the input market and we are also consumers of goods and services in product market.
A. In 1996, many cows in Great Britain came down with "mad cow disease". As a result, the nations of European union banned the import of British beef.
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