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Sometimes, a bidder on a work contract may bid lower than what would maximize his/her profit from the contract and the reason for that is to create goodwill (to increase expected future business from the buyer). How would you value the goodwill that is obtained in this way?
In 300 words or more
Mitchell's money income is $150. The price of X is $2 and the price Y is $2. Given these prices and income, Mitchell buys 50 units of X and 25 units of Y. Call this combination of X and Y, bundle J. At bundle J, Mitchell's MRS is 2. At bundle J, if M..
Illustrate what is the distinction between marginal revenue product also marginal revenue. How does the government of Canada redistribute income.
Assume that the long-run aggregate supply curve is vertical at Y = 3,000 while the short-run aggregate supply curve is horizontal at P = 1.0 (P = 1.0 is the SRAS Curve, in other words). The aggregate demand curve is Y = 3(M/P) and M = 1,000. If the e..
Locate recent articles in the New York Times or Wall Street Journal in which economists are quoted using positive and normative statements.
What is “effective demand” according to keynes? How can there be a lack of effective demand? How did keynes explain that aggregate production and aggregate spending might not be equal? What happens if aggregate production is greater than aggregate sp..
Describe aggregate supply from a classical economist’s perspective. P(t) = US$2 per coconut; E(t) = MX$1 per US$; P ROW(t) = MX$3 per coconut. a. What is the real exchange rate? b. Does purchasing power parity hold? Give three reasons why the purcha..
Describe the concept of strategic interaction in game theory and how it differs from single agent or player games (e.g. a monopoly or an individual maximizing their utility)
A maker of special handling devices for beverage manufacturing purchased an airplane for use by the company's executives. The airplane cost $1,500,000 and has an estimated 7-year life. What is the total amount depreciated (to closest dollar) through ..
In GDP is $5 trillion in Yr 1 and $5.4 trillion one year later. What is the GDP growth rate? If rGDP in Yr 1 was also $5 trillion what can you say about Yr1? If rGDP grew 5% between Yr. 1 and Yr. 2 what did GDP prices do?
If bagels and doughnuts are substitute goods, then which of the following is likely to occur if the price of bagels is reduced?
The three studies that Bivens (2005) reviewed indicate that offshoring benefits the US economy through both employment creation and price reduction. Bivens argues that the results from these three studies are not reliable at best and, in some cases, ..
Reading: Haller, S. F. & Gerrie, J. (2007). The Role of Science in Public Policy: Higher Reason, or Reason for Hire? Journal of Agricultural and Environmental Ethics, 20(2), 139-165. Retrieved from ProQuest database.
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