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Questions: 1. Describe market failures and government failures. Explain how the government can be used to solve market failures,
2. Explain elasticity as it relates to consumer behavior. How does utility maximization work and explain how it affects consumer behavior.
3. Explain explicit and implicit costs and why both are important when making business decisions. What is accounting profit, and what is normal profit? What is the difference between fixed and variable costs?
4. Describe the characteristics of the pure completion market structure. Why is the consideration of pure completion different in the short run than it is in the long run?
What is the profit-maximizing price of e-books in the short run? What is your prediction of the profit-maximizing price of e-books in the long run
Explain why economic profits are zero in the long run in a monopolistically competitive market. What are the characteristics of a public good?
an economy is currently made up of a firm that produces bread a firm that produces butter and a consumer who consumes
Suppose that labor is the only factor of production in two countries, Bladia and Garumba. In Bladia, 10 pounds of apricots requires 4 hours of labor, and 10 pounds of apples requires 6 hours. What is the opportunity cost of a pound of apples in Bla..
Comment on the main lesson drawn from this exercise with respect to the use of collateral to facilitate credit access.
Suppose that insurance companies are compelled to offer complete coverage: a(L) = L. What will be the results in terms of the insurance policy that is offered and the level of care the warehouse owner will take?
The variable lnchprg is the percentage of students eligible for the federally funded school lunch program. Why is this a sensible proxy variable for poverty?
What are the practical importance of income elasticity of demand?
Our company must replace an obsolete machine press. We have two bids that are summarized below. Both of the presses fall into the MACRS 5 year property classification. Our company uses an after tax MARR of 12% and MACRS depreciation. Our company fall..
med-tech labs is a facility that provides medical test and evaluations for patients ranging from analyzing blood
How many proper subgames are there? Find the pure-strategy subgame-perfect equilibria. Convert the original extensive-form game (of part a) into a strategic-form game.
Cypress River Landscape Supply is a large wholesale supplier of landscaping materials in Georgia. Cypress River's sales vary seasonally; sales tend to be higher in the spring months than in other months.
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