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1. A prisoners dilemma leads to a noncooperative equilibrium (true/false)
2. A natural monopoly is characterized by large fixed costs relative to variable costs (true/false)
3. In a sequential game, one firm will act first and then other firms will respond (true/false)
4. The market price of a factor of production that is in fixed is determined only by demand (true/false)
George is going to replace his car in 3 years when he graduates, but now he needs a radiator repair. The local shop has a used radiator, which will be guaranteed for 2 years, or they can install a new one, which is "guaranteed for as long as you own ..
An animal health care distributor has a Distribution Center (DC) in the Chicago, IL. The company would like to store penicillin that is used for companion animals at this facility. Given data below calculate the inventory management parameters as wel..
We have examined four market structures so far-- (perfect) competition, monopolistic competition, oligopoly and monopoly. Please pick one market structure and find a (few) representative firm and explain why this firm's behavior is consistent with th..
Supply-side economics has a long history, dating back to at least the fourteenth century. The greatest of medieval historians, Abu Zayd Abd-ar-Rahman Ibn Khaldun (1332–1406), included in his book, The Muqaddimah (1377), an Islamic view of supply-side..
Suppose the media reports that the federal deficit this year is $200 billion. The national debt was $5,000 billion last year, and it is $5,200 billion this year. The price level this year is 3 percent higher than it was last year. The real deficit is..
Larger firms produce a product at larger average cost than small firms when:
During the recent 2007-2009 economic contraction, nominal interest rates fell to nearly 0% while the rate of inflation remained positive. What happened to the real interest rate? How would this movement in the real interest rate affect decisions to s..
Suppose that the inflation rate is currently 4%. The level of potential real GDP is estimated at $4 trillion and the level of current real GDP is estimated at $3.75 trillion. Use the Taylor rule to estimate the target Federal funds rate
Define marginal utility. Explain the law of diminishing marginal utility. Why is marginal utility more useful than total utility in consumer decision making?
Suppose that a small town has seven burger shops whose respective shares of the local hamburger market are (as percentages of all hamburgers sold): 26%, 25%, 20%, 12%, 9%, 5%, and 3%. What is the four-firm concentration ratio of the hamburger industr..
What are your thoughts on tort reform, more specifically setting caps/limits (ceilings) on jury awards/verdicts in tort liability cases. Class action cases? Corporate liability cases? Is this a good idea? Who would lobby for these caps? Who DOES lobb..
Calculating inflation using a simple price index-Which of the following, if true, would illustrate why price indexes such as the CSPI might overstate inflation in the cost of going to college? Check all that apply.
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