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Assume that you are the newly appointed head of the NCAA. Construct a framework for a new scholarship program that would entirely replace the existing system. Describe what should be its tenets if
a) The primary goal is to ensure that athletes are not exploited.
b) The primary goal is to ensure that student-athletes receive degrees
c) The primary goal is to maximize profits.
Calculate the equilibrium buyers' and sellers' price with no sales tax, and then with the 20% tax. Explain how answer illustrates the principle that less responsive side of the market will pay more than half the total cost of sales tax.
When General Motors devotes $1 billion to new investment (e.g., building new factories, warehouses, offices), who does the saving that is required? Stockholders? Workers? The public? Buyers of cars? It is estimated that the value of our private capit..
Defend the following terms using graphs or equations to illustrate your answers wherever feasible. Portfolio feasible set, efficient portfolio, efficient frontier. Indifference curve, optimal portfolio. Capital Asset Pricing Model (CAPM) Capital Mark..
Explain when a researcher is trying to estimate the causal effect of X on Y, and finds that the R^2 of her bivariate regression model is around 0.04.
You want to set up a college saving plan for your sister. She is currently 10 years and will go to college at age 18. You assume that when she starts college, she will need at least $100,000 in the bank. How much do you need to save each year in orde..
Find the monopolist's profit-maximizing output and price - calculate the monopolist's profit and what is the Lerner Index for this industry?
There are increasing returns to size whenever increasing the output of the business results in: At the output level where MC is just equal to ATC:
Is the online book retail industry qualified as a perfectly competitive market by the four market characteristics listed in the lecture note? If not, what characteristic(s) is (are) not met? There are so many companies having websites to sell their p..
An article in the Economist magazine observes: “One big reason to tie money to a commodity standard would be to limit its growth in order to protect against runaway inflation.” Source: “on Gold and Golden Ages”. Economist, September 11, 2012. Why wou..
Susan Jones has a job as a pharmacist earning $45,000 per year, and she is deciding whether to take another job as the manager of another pharmacy for $55,000 per year or to purchase a pharmacy that generates revenue of $250,000 per year. What would ..
Discuss why a corporation would want to enter a country with a high political risk and benefits that would need to be present to outweigh risk. Provide specific examples to support your response.
if Bob bids $ 5, Alice bids $ 6 and Bob n passes, Alice gets $ 20 and pays $ 6 to auctioneer and Bob pays auctioneer $ 5. Both have $ 100 to bid. What is optimal strategy.
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