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A British pharmaceutical company spent several years and considerable funds on the development of a treatment for HIV patients. Now, with the protection afforded by patent rights, the company has the potential to reap enormous gains. The government, in response, has threatened to tax away any rents the company may earn. Is this an advisable policy? Why or why not? (HINT: Contrast the short-run and long-run effects of taxing away the economic rents.)
Represents the potential outcomes of your first salary negotiation after graduation and does the ability to move first give the employer an advantage?
Describe the effect of each of the following events on the market for labor in the computer manufacturing industry. Use graphs.
Assume that the medical screening industry is perfectly competitive. Consider a typical firm that is making short-run losses. Suppose the medical screening industry runs an effective advertising campaign which convinces a large number of people th..
Compute the price elasticity of demand for paint and show your calculations. Decide whether the demand for paint is elastic, unitary elastic, or inelastic. Explain your reasoning and interpret your results.
Add an indifference curve to your graph and label the point of consumer equilibrium. Indicate Chris's consumption level of A and B. Explain why this is a consumer equilibrium. What can you say about Chris's total utility at this equilibrium?
Draw the game as a table. What are the Nash equilibria of this game? How does this game differ from a prisoner's dilemma, and how can participants achieve the optimal (both hunt Stag) outcome?
Evaluate the cash flow for each year relevant to the analysis. Make a table of cash flows, by year. Compute the net present value of the proposed outpatient clinic. Should the administrator recommend the hospital's trustees that the clinic be built? ..
When international hostilities increase, the United States government will sometime use trade sanctions instead of military action.
Would the accumulation of historical prices and quantities exchanged in the market establish a long-run supply curve? How would the historical relationship differ from how firms (and economists) envision today's long-run supply in the industry?
Use a graphical illustration to describe briefly what the influence an increase in immigration on the market supply of labor
Doesn't the labor theory of value imply that people should write the labor content of their commodities on the price signs instead of amount of money? How would you answer your friend?
So the people that live within walking distance are the only customers you might get, and there are no other stores nearby. If the firm sells the products separately, what price should it charge.
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