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Suppose in a city, there are three types of individuals and each type has a different demand for public goods. The marginal benefit for A is MB=60-Q, marginal benefit for B is MB=90-Q, and marginal benefit for C is MB=85-Q. Suppose all of them have to pay the same the same price of $40. Suppose a limit of 40 is set on public good provision. Calculate the welfare change for individual A compared to the median voter outcome
1. Why does "substitution bias" arise if the inflation rate is calculated based on a fixed basket of goods?
During the financial crisis of 2007-2008, the governor of the Bank of Canada expressed concern that the commercial banks were "hoarding" cash rather than extending a more appropriate volume of loans. Why might the banks do this, and what is the impli..
What can be the real life example of a market that comes close to operating like a 'perfect market'.
q1. in a perfectly competitive firm when you have a table which gives quantity cost total costs explain how can you
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How have Taobao and JD.com evolved their e-commerce strategies to remain competitive in the global marketplace?
The hybrid model of a car averages 40 miles per gallon as compared to the regular model that gives only 28 miles per gallon. Assume that the resale value of the Hybrid model would be $500 more at the end of five years as compared to the regular model..
The nominal annual interest rate was 6%. After 10 years (120 payments) he sold the house and paid off the loan's remaining balance.
In order for price discrimination to exist
Compared with perfect competition, quantity produced in monopolistic competition is inefficient as price is higher than marginal cost (i.e. allocative inefficiency). Why do some economists argue that even if price is higher than marginal cost, it doe..
For what values of Z does Heidi accept two independent plays of the bet? iii) is is possible for Heidi to reject the single bet but accept the aggregate bet?
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