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Question: The United States Postal Service (USPS) has a government monopoly on home mail delivery, but several private companies, such as FedEx, UPS, and DHL, compete with the USPS for other types of delivery service. Describe the differences in producer and consumer surplus, and in overall social welfare, that would occur in each of the following scenarios.
a. The USPS has a monopoly on every type of mail or package.
b. Consumers are allowed to choose between USPS, UPS, FedEx, and DHL for home mail delivery.
c. There are an infinite number of local and national mail providers.
Now, calculate India's 2001 purchasing power parity GDP valuing India's 2001 output using 2001 US prices (Equation 2.5 from the text). Is this value larger.
If you drive 10,000 miles per year, which tire should you buy? Tire A costs $65 and should last 40,000 miles. Tire B costs $85 and should last 60,000 miles.
Gillette's shareholders, Chairman and CEO James Kilts indicated, "Despite several new product launches, Gillette's advertising-to-sales declined dramatically . . . to 5.5 percent last year. Gillette's advertising spending, in fact, is one of the l..
Consider the market for widgets. Widgets can be produced in the United States or abroad. Assume that U.S. consumers wish to buy the least expensive widgets.
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Suppose that you are considering subscribing to Economist Analyst Today magazine. The magazine is advertising a one-year subscription for $60 or a two-year subscription for $115. You plan to keep getting the magazine for at least two years. The adver..
Give an example of a nonlinear system that has an equilibrium point for which the linearized system has a zero eigenvalue, but the nonlinear system has only one equilibrium point.
Describe how the choices made between governments’ spending of taxpayer money or taxpayers spending that money themselves, affect the allocation of society’s resources. Give reasons.
1 consider a firm that has just built a plant which cost 20000. each worker costs 5.00 per hour. based on this
Drywall and its principal inputs, gypsum and paper, are costly to transport. Some drywall manufacturers(for example, National Gypsum) list plant locations online. Do plant locations of NationalGypsum suggest drywall manufactures in the United States ..
On April 2, 1998, an engineer bought a $1000 bond of an American airline for $875. The bond paid 6% on its principal amount of $1000.
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