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Define the “Meeting Competition Clause”. Could the imposition of the meeting competition clause possibly help these players obtain the (cooperate, cooperate) equilibrium? Explain?
There exists a debate among monetary policymakers as to the appropriate inflation measure that should be used to guide policies. Four alternatives are the consumer price index, the consumer price index excluding food and energy prices, the personal c..
The law of comparative advantage recommends that countries specialize in those products in which they have a comparative advantage, not an absolute advantage.
Find out the net demand curve facing firm A. Describe A's optimal price and output. Explain how much output do the other firms supply in total.
If Congress and the president pursue an expansionary fiscal policy at the same time as the Federal Reserve pursues an expansionary monetary policy, how might the expansionary monetary policy affect the extent of crowding out in the short run? Explain..
You are the manager of a gas station and your goal is to maximize profits. Based on your past experience, the elasticity of demand by Texans for a car wash is -4, while the elasticity of demand by non-Texans for a car wash is -6. If you charge Texans..
Calculate the price elasticity of demand using the point formula for Px = 20 and Py = 10. Determine whether demand is elastic, inelastic, or unit elastic with respect to its own price and whether Good Y is a substitute or a complement with respect..
Describe "how" producer surplus is measured?
Pharmaceutical Benefits Managers or PBM's are intermediaries between upstream drug manufacturers and downstream insurance companies. They design formularies (list of drugs that insurance will cover) and negotiate prices with drug companies.
Assume that a painter produces 20 paintings this year and 20 paintings next year. What is the annual change in nominal GDP if the price of paintings rises from $1,000 this year to $1,500 next year? Can you conclude that the economy grew from this yea..
Marx argues that capitalists appropriate surplus value through the process of exploitation. Explain what Marx means by “exploitation” and discuss the various means by which capitalists seek to extract additional surplus from workers. Provide real-wor..
Drones (unmanned aerial vehicles) are being developed for use on farms and ranches. If government regulations allow for their use by farmers, what would that mean for firms in the corn industry (a perfectly competitive market)? Specifically, how woul..
A firm has estimated that the demand for its product comes from two types of customers, type I and type II. Each type I customer (there are 45 of them) has a demand curve given by Q = 20 - P, while each type II customer (there are 50 of them) has a d..
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