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A growing number of businesses-including videogame developers, cigarette companies, soft drink producers, liquor marketers, and fast food chains-are feeling the heat from government, the press, and society at large for encouraging harmful consumer habits. But in our free market economy, people are free to choose the products they consume (within legal boundaries, of course). Where does personal responsibility end and corporate responsibility begin? How does your response change across specific industries? What role (if any) do you believe the government should play?
Suppose the demand for computers. For each of the following, state effect on demand, find the equation of the demand curve if consumer incomes are $30,000,
Explain the concept of a concentration ratio and is the concentration ratio in a monopolistically competitive industry likely to be higher than for a perfectly competitive industry? Explain your answer
Why do public goods demonstrate the limitations of a free market economy. they allow consumers to make all of the economic decisions or else.
Describe the phenomenon of market foreclosure. Specifically, describe how a vertical merger may "substantially lessen competition or tend to create a monopoly" through virtue of market foreclosure.
Explain how economics is used as a social science and as a policy tool and write a two-page essay in which you address the issues.
Describe three ways in which the Federal Reserve can change the money supply.
What happens in the market for oranges if there is a hurricane that destroys the orange crop and explain why is strategic interdependence important for market structure of oligopolies?
Suppose the consumption function is c = $400 billion + 0.8y and the government wants to stimulate the economy. By how much will aggeregate demand at current prices shift initially (before multiplier effects) with A $50 billion increase in governm..
What forecast would you make for the merged firms' profits and what explanation might there be for such a strategy? After the merger, what prediction would you make about advertising rates?
Calculate the total social marginal benefit function and what is the socially efficient number of computer movie files?
Explain how microsofts bundling of free internet browser software with its windows operating system could violate US antitrust laws, and be sure to mention which laws in particular might be violated.
Discuss how Internet security measures can actually create opportunities for criminals to steal, rather than prevent them.
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