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Question: In the grim trigger example of the text, show that if the discount rate is low enough it pays the potential cheater to adhere to the agreement for two (or more) periods rather than break it in the first period. Extra credit: Calculate the maximum discount rate at which she will keep to the agreement for two periods rather than just one. What happens to the incentive to cheat as a person's discount rate approaches zero?
What is the importance of law of supply
Compare and contrast at least two areas of the economy that the new health care act impacts. Explain your rationale.
hormone free dairy milk has been found to be potentially more beneficial and healthy. consider the market for this
What effect is the new diet likely to have on the number of apple orchards within 100 miles of New York City?
Suppose that velocity is constant and the economy's output of goods and services rises by 5 percent each year. What will happen to nominal GDP and the price level next year if the bank of Canada keeps the money supply constant
cinema theater has estimated the following demand functions for its moviesdaytime demand qd 400 - 50 pd nighttime
1. which of the following statements is correct?a. real gdp is the total market value of the final goods and services
Problem: Assume that the demand for welding services is D(P) = δ - ?P, where ?>0 and δ>0 are exogenous parameters. The baseline case is ? = ½ and δ = 34.
What gives the monopolist the ability to earn positive economic profits when the firm facing perfect competition can only earn zero economic profits in the long-run?
What is Diane's Florist's operating breakeven point in units (flower arrangements)? Calculate the degree of operating leverage at 300 flower arrangements.
Why is mutual interdependence important under oligopoly, but not so important under perfect competition, monopoly or monopolistic competition?
Google rejects the idea that it's in the search advertising business, an industry in which it holds more than a 70 percent share of revenue. Instead, the company says its competition is all advertising, a category broad enough to include newspaper..
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