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Consider a subway company whose cost function is given by C(T) = 1000 +T. Due to the government regulation, this company must set the fare per passenger at the marginal cost (MC pricing). Is this pricing efficient? Would this company run the business under this regulation? Explain your answer and suggest a possible policy to solve the problem if applicable.
The steel industry pollutes the atmosphere as a consequence of its production process. Is it possible that it would be better for society that steel is produced by a monopolist instead of a set of perfectly competitive firms?
William owns just one ship. Ship is worth 200 million dollars. The probability the sink will ship is .02. His total wealth including the value of the ship is 225 million. U(W) is equal to the squre root of W. What is the maximum amount that william w..
Graphically show the income and substitution effect using indifference curves and budget constraints and discuss why it is important to look at this when the price of a good changes.
Suppose the legislature enacts minimum wage legislation in order to provide workers with a "living wage.
Analyzing and understanding data is an important part of decision making. Econometrics is defined as the statistical methods used to analyze data and make informed decisions. For this assignment, you are required to research data related to an econom..
Currently, a fast-food firm has a monopoly in the university student union. The monopoly pays the university $75,000 a year in order to maintain it. The firm earns an economic profit of $290,000 per year. Another fast-food firm wants to enter the mar..
Elucidate which is more cost-effective. If the salary rate increased to $12 an hour, which would be more cost-effective.
Two economists agree that labor market discrimination against certain workers unfairly leads to lower wages for the disfavored group. Economist X argues that government intervention is most likely necessary to eliminate this unfair treatment, Economi..
Riley deposits $4,000 cash in her checkable deposit at Fershur Bank. If the desired reserve ratio is 5%, Fershur Bank’s
q1. think about the electoral competition model with three candidates. extend the model to incorporate that candidates
suppose a consumer prefers a sandwich with 2 slices of bread and 2 slices of ham. Assume that price per slice of bread is .10 and per Ham is .25. The consumers budget for lunch is 3.50. Write the budget constraint and show a few indifference curves.
Are firms with a high percentage of union employees more likely to go bankrupt because of the higher wages that they pay? Why or why not? If immigration is reduced, what is the impact on the wage for low-skilled labor?
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