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How does the Coase Theorem provide an alternative to government regulation and provision of services? How is the definition of private property critical to the Coase Theorem?
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Will the brothers gain if they specialize. Illustrate your answer with an example.
What level of money supply should the central bank set next year if it wants an inflation rate of 4%? What growth rate should the central bank set for the money supply if they want inflation to be steady at 2% per year?
A monopolist operates in an industry where the demand curve is given by Q=1000-2p. The monopolist's constant marginal cost is 8 dollars. What is the monopolist's profit maximizing price? How much does the monopolist produce? What are its profits?
1. There is a fruit seller who has 30 Kgs of apples to be sold and he wants to fix a price so that all the apples are sold. There are three customers in the market and their individual demand functions are given below:
Suppose that you were an industry analyst trying to determine if the leading firms in the automobile manufacturing industry are playing a tit-for-tat pricing game. What real world data would you want to examine? What would you consider to be evidence..
An important key to the American victory in the South was the
Illustrate the effect of captial formation by comparing the production possibilty curves, at the present time and ten years in the future, for two economies.
Consider a market where demand is D: P = 24 – Q and supply is S: P = 2 + Q. 1. Equilibrium quantity Qe is a. 10 b. 11 c. 12 d. 13 2. Equilibrium price Pe is a. $11 b. $12 c. $13 d. $14 3. Consumer surplus CS is a. $50 b. $55 c. $60 d. $60.5 4. Produc..
The price elasticity of demand for natural gas is -1.2, and the price elasticity of supply for natural gas is 0.6. If the government imposes a ceiling price for natural gas that is 10 percent below the equilibrium price, the result will be a shortage..
What are the key limitations of per capita national income as a concept of well-being? Explain the nature of limitation in each case. Which of these limitations can be adjusted for? Are they in fact adjusted? What is the basis of the concept of huma..
A pretzel-stand owner in Chicago hires workers to make hot pretzels and sell them to customers. If the firm is competitive in both the market for pretzels and in the market for pretzel-makers, then it has
For the next five questions, consider a monopolist. Suppose the monopolist faces the following demand curve: P = 180 - 4Q. Marginal cost of production I is constant and equal to $20, and there are no fixed costs. What is the monopolist's profit maxim..
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