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You have learned that a monopolist is a price-setter which charges a price above marginal cost. Provide BOTH and argument for and then an argument against government regulation of a monopoly.
In your opinion, discuss when it makes sense to forego purchasing car insurance (assuming the state did not require it). In your answer, use moral hazard and risk aversion to describe your decision.
Suppose there is an early freeze in California that reduces the size of the lemon crop. What happens to consumer surplus in the market for lemons?
Many U.S.? cities, especially those with large populations of? renters, have rent controls. Suppose that San Francisco sets a rent control of $400 per month on? one-bedroom apartments. The rent control will create a _____ of apartments equal to______
If a firm is losses money, it might be enhanced to stay in business in the short run. Is this statement ever true.
Use a labor/leisure model (with leisure hours on the horizontal axis and income on the vertical axis) and words to explain in detail why an income tax creates a welfare cost (or excess burden). Assume that the tax is a constant marginal tax on earned..
What would be the new equilibrium in this economy if Investment increased by $12.
q1. suppose the general public purchase 500 million in government bonds and pay for them by drawing cheques on their
The quantity demanded x of a certain brand of DVD player is 3000/week when the unit price p is $485. For each decrease in unit price of $20 below $485, the quantity demanded increases by 250 units. The suppliers will not market any DVD players if the..
We are all familiar with fluctuating prices of gasoline at the pump. Explain why does this happen.
All parties make a single bid. But do not disclose the bid to peers. The organizer chooses the maximum (or minimum) bid as the winner. What are benefits of such a system as opposed to normal auction where bidders openly declare the bids and keep upda..
Need help with the paper on federal reserve system and its monetary policy tools. Also discuss the influence of federal funds on major economic indicators like inflation
A major defence supplier expects to generate additional revenue from its recently won government contract. The company expects the revenue will be $110 million in the first year and the revenue increasing by $2.5 million each year for the next 4 year..
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