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Suppose that a car stalls on the railroad tracks because its carburetor is badly maintained. A train collides with the car because the train’s brakes are badly maintained. What is the proximate cause of the accident? Who had the “last clear chance” to avoid the accident? Does the answer to the first question affect the answer to the second question?
Suppose that B’s faulty driving causes an accident that injures driver A. A was not at fault in her driving, but she was not wearing her seat belt, and this fact aggravated her personal injury. Discuss liability under the rules of simple negligence, negligence with a defense of contributory negligence, and comparative negligence.
For purposes of the theory of accidents, how would you define the activity level of a railroad? An airline? For some activities, the level relevant to the probability of an accident is difficult to define. Can you define an activity level relevant to a homeowner’s maintenance of her front steps? A pharmaceutical company’s sale of a drug with dangerous side effects?
Two goods are purchased such that the marginal utility derived from A is 440 utils, and from B is 870 utile; the price of B is $11 and the price of A is $5.50. For a given total dollar amount spent on these two items, has total utility (combined) bee..
Calculate the elasticity of demand for your chosen company's automobiles (or choose a specific make / model). Interpret what the demand tells your chosen company's management team.
Explain how the strength of the economy as a whole could affect the marginal benefits also the marginal costs associated
What is the labor market classification of each of the following individuals? Be as specific as possible, and explain your answer. Julie has a graduate degree in mechanical engineering. She works full time mowing lawns. Jeff was laid off from his pre..
World trade has grown substantially in the last 60 years. For example, while world output grew at an annual rate of 3.8% per year between 1950 and 2003, world exports grew at 10.8% per year over the same time period. Which of the following help to ex..
A market with demand Q = 10 p is supplied by a monopoly with costs C(Q) = 6 + 2Q. Calculate the equilibrium price, output, and monopoly profits. What would be the equilibrium if the market were supplied competitively by firms, and each firm had the s..
Suppose savers either buy bonds or make deposits in savings accounts at banks. Initially, the interest income earned on bonds or deposits is taxed at a rate of 20%. Now suppose there is an increase in the tax rate on interest income, from 20% to 25%...
Interview a business person to learn how purchases are made in his or her organization. Ask this person to describe a straight rebuy, a modified rebuy, and a new-task-buying situation that took place recently or of which he or she is aware (you may n..
The US recently purchased $1 billion of 30-year zero-coupon bonds from a struggling foreign nation. The bonds yield 4.5% per year interest. Zero coupon means the bonds pay no annual interest payments. Instead, all interest is at the end of 30 years.
q1. short run profit maximizingthe producer of high-quality flatbed scanners is tiresome to decide what price to set
How does the analysis of risk aversion change when one allows for alternative models of decision-making then expected utility? How does subjective expected utility theory differ from expected utility theory? How might one elicit a subjective probabil..
Illustrate what does a contraction Gap imply about the actual rate of unemployment relative to the natural rate
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