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The chapter provides data indicating that there are many more sole proprietorships than corporations or partnerships. Why are there so many sole proprietorships? Why is the revenue of the average sole proprietorship less than that of the typical corporation?
Formulate the dynamic optimization problem of a representative household, and show that any interior solution to this problem violates the transversality condition. Interpret this result.
Choose a product you have purchased in the past month from a clothing or shoe store. Describe how each of the 4 factors contributed to the elasticity of the good. Is the product considered elastic, inelastic, or unitary elastic
A survey of an urban university (population of 25,450) showed that 870 of 1100 students sampled attended a home football game during the season. What inferences can be made about student attendance at football games
How can economists explain irrational behavior?
The Fed attempts to increase the money supply to stimulate the economy, but plants are operating at 65 percent of their capacities and businesses are pessimistic about the future.
suppose there are 2 countries home and foreign two factors of production capital and labor and two products food and
profit contribution analysis. Kathy's Bakery is a full -service bakery in Omaha, Nebraska. Kathy sells loaves of wheat bread for $3 a loaf. Of this amount, $1.50 is profit contribution. She is considering an attempt to differentiate her shop
Water damage from flooding related to hurricane Sandy in two northeastern Cities resulted in damages estimated at $216 million. As a result of the claimant payouts, insurance companies raised homeowners' insurance rates by an average of $118 per y..
What is the effect of a $1 specific tax on equilibrium price and quantity if demand is perfectly inelastic? What is the incidence on consumers? Explain.
What would the traditional model of rational economic man recommend as a strategy to induce people to take better care of their health? How might a focus on motivation be an alternative or complementary strategy to shift the demand curve?
Suppose that the eye doctor offers senior residents a discounted price for an eye exam. The demand function for senior residents is Qs = 50 - Ps, and the demand function for the general public is Qg = 60 - Pg. The marginal cost for an eye exam is ..
To what extent may the market structure in the industry lead firms to engage in anticompetitive behaviors? Use Apple or Apple products as a sample
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