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Microeconomic
Why might a profitable motel shut down in the long run if the land on which it is located becomes extremely valuable due to surrounding economic development? What kinds of costs are involved in making a decision to shut down?
Find out the firm's optimal quantity, price, and profit (1) by using the profit and the marginal profit equations and (2) by setting MR equal to MC. Also provide a graph of MR and MC.
Management and a labor union are bargaining over how much of a $50 surplus to give to the union. The $50 is divisible up to one cent. The players have one shot to reach an agreement. Management has the ability to announce what it wants first, and the..
Find the new equilibrium price and quantity, and show this on your graph - Find the equilibrium price and quantity.
The goal of the supplier of a product or service in a market economy is:
How would you characterize your demand for health insurance — elastic or inelastic? Does the price elasticity of health insurance vary with age, ethnicity, gender, etc.? Does it vary depending on the type of medical procedure needed
HP provided AAA with sophisticated equipment and reliable repair service, for several years. AAA returned a failed piece of equipment. A meeting was held which included Juanito Rios, AAA's representative; Sonia Martinez
Suppose labor costs are 17.5 percent of revenue per vehicle for General Motors. In union negotiations during the late 1990s, GM attempted to cut its workforce to rise productivity.
Why are banks able to maintain reserves that are only a fraction of the demand and savings deposits of their customers? Is your money safe in a bank? Why or why not?
What is the profit maximization output for this monopolist? How much total revenue does it earn at this profit maximization level of the output? Suppose that the marginal cost increases to $20. How does total revenue change?
Is there a dominant strategy? What is (are) the Nash equilibrium (equilibria)? Explain. Is there a mixed equilibrium strategy? What behavior would you predict for Delta in a one-play game and why
The government has a budget surplus if: Changes in the budget balance:
Agricultural commodities are known to have a price-inelastic demand and the be necessities, How can this information allow us to explain why the income of farms falls (a) after a good harvest? (b) In relation to the incomes in other sectors of the..
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