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Question
After paying $1.50, you are allowed to open a newspaper vending machine freely (i.e. get as many as you want). In contrast, a soft drink vending machine only drops one can after you pay the same amount of money. Why? Please explain the difference in detail so simple comprehension.
Two competitors A and B compete on quantity simultaneously in a market where demand is described by P = 49 - Q, where Q = A + B. Firm A has production costs C(A) = 17 + 4A + 0.5A^2. Firm B has production costs C(B) = 16 + 5B. What is the Cournot equi..
Calculate Rie's income elasticity of demand for beef and income elasticity for rice, Is rice a normal good or inferior good
How serious is the threat of an onine sales tax to Amazon? How would sales be affected if Amazon were required to collect sales taxes in all states? How would profits be affected? What overall nonmarket strategy is Amazon using to deal with the sales..
z is the marginal utility per dollar measured in utils, x is the amount spent on product A, and y is the amount spent on product B. What is the marginal utility per dollar? What is best way to allocate the expenditure of the $40?
Identify each of the following taxes as being either progressive or regressive.
If an individual's utility function is given by U(xy) = x0.4y0.6 and I = 200, px = 2,py = 3, his or her preferred consumption bundle will be:
Explain how natural monopolies cause market failure? How is the deadweight loss associated with this form of market failure measured? What is a typical form of government intervention to correct it? How effective is this type of intervention? Use the..
Municipal bonds of equal risk currently yield 4.4%. At what tax rate would an investor be indifferent between these two bonds?
According to crowding out hypothesis, an increase in ---- will lead to increase---- and later on a crowding out of (a decrease in)------
Suppose that the US current account deficit must be reduced. Explain in terms of CA ≈ (S – I) + (T – G) what must be done to reduce the current account deficit. Why will this be difficult? (Hint: It may be helpful to think about the household that ha..
Of the following the MOST useful guideine in designing strategy-facilitating policies and operating procedures is: (1) to prescribe enough policies to give organizational members clear direction in implementing strategy and to place reasonable bounda..
In the aggregate expenditures model, it is assumed that:
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