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What do you make of the conundrum Samuels addresses at the bottom of page 295? Does democracy cause economic growth or does economic growth cause democracy?
Compared with perfect competition, quantity produced in monopolistic competition is inefficient as price is higher than marginal cost (i.e. allocative inefficiency). Why do some economists argue that even if price is higher than marginal cost, it doe..
What is the optimal capital/labor ratio? If the firm can spend a total $320 in K and L, what is the optimal amount of K and the optimal amount of L?
What does this imply about the relationship between the elasticity of the product demand curve and the magnitude of the scale effect? What does this imply about the relationship between the elasticity of the product demand curve and the elasticity of..
Two equal-sized newspapers have overlap circulation of 10% (10% of the subscribers subscribe to both newspapers). Advertisers are willing to pay $10 to advertise in one newspaper but only $19 to advertise in both, because they’re unwilling to pay twi..
The revenue function R(x) and the cost function C(x) for a particular product are given. these functions are valid only for the specified range of values. Find the number of units that must be produced to break even. R(x) = 200x - x^2; C(x) = 10x + 7..
Consider the following supply and demand functions. Calculate the consumer surplus, producer surplus, and welfare level without the price floor. Calculate the consumer surplus, producer surplus, welfare level and dead weight loss with this price floo..
Calculate Pete's marginal and average cost schedules. What are Pete's profit-maximizing output and price? What is Pete's economic profit? Explain your answer.
Illustrate what are the opportunity costs for the manager of being in this business relative to returning to his old job. What is the economic profit of the business.
A market is characterized by a demand curve that can be expressed as P = 400 – 5 Q. Each of the firms currently serving the market has a total cost function of the form C = 50 q. There are no fixed costs. compute the present value of a stream of prof..
Taxes to reduce teenage smoking? Many researchers believe the falling price of cigarettes during the mid-1990s caused an increase in teenage smoking, whereas price hikes during the late 1990s led to a reduction in teenage smoking.
If the number of suppliers in the micro calculator industry increases, illustrate what would we expect to happen.
Why might governments nationalize firms and do they have added advantage or unfair one over the private owned firms? What are the different forms of terrorism and how can international managers meet this challenge?
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