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Would the outcome of a Hotelling model with prices regulated by the government be efficient?
A. Yes, it will be efficient. Such regulation will induce the firms to locate in the social optimal location.
B. No it will not be efficient. Price regulation does not affect efficiency in this setting.
C. Yes, it will be efficient. Regulation can lower the price until consumer surplus is maximized.
D. No, it will not be efficient. Firms will use maximum differentiation, which is inefficient.
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If your neighbour returns from a shopping trip saying that she got a lot of consumer surplus from her purchases
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Divide the Banzhaf power index by the number of votersin state. Are votersin small states or are votersin big state more powerful, according to this measure.
Farm must decide whether or not to purchase a new tractor. The tractor will reduce costs by $2,000 in the first year, $2,500 in the second and $3,000 in the third and final year of usefulness. The tractor costs $9,000 today, while the above cost savi..
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