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Private equity firms, such as Blackstone and Kohlberg Kravis Roberts & Co., search for firms where the managers appear not to be maximizing profits. A private equity firm can buy stock in these firms and have its employees elected to the firms' boards of directors and may even acquire control of the targeted firm and replace the top management. Does the existence of private equity firms reduce any problems in corporate governance? Briefly explain.
Does economic theory indicate that an ideal regulatory agency that forces a monopoly to charge a price equal to either marginal or average total cost will improve economic efficiency Does economic theory suggest that a regulatory agency
How much time will Thoreau spend in leisure?
a pet store is considering adding an employee discount of 25 off anything in the store to the benefits the employees
1. the absolute value of the short-run elasticity of demand for bread has been estimated to be 0.15. its long-run
Describe the behavior of consumption, investment, labor, productivity, wages, the price level and the money supply over the business cycle both in terms of correlation, magnitude and lead vs lag. Give the economic intuition of the results on consu..
Using the file FARM.csv. Construct the variable Q = (PBARL*QL + PBARC*QC + PBARO*QO)/10 where PBARL, PBARC and PBARO are the arithmetic averages of PL, PC and PO respectively.
In monopolistic competition as well as in monopoly,
What is the difference between scarcity and shortage? Give an example of each and argue whether or not (for each of your examples) the problem of scarcity or shortage will ever be solved. If so, how?
the lecture described how taxing income may change savings behavior. suppose instead that the government taxed
Are the cross-price elasticities of demand between the following pairs of products likely to be positive or negative? Briefly explain. Iced coffee and iced tea and French fries and ketchup.
Suppose that competition among several market makers forces the spread down to $2. How many goods are traded?
Forty years ago, students used typewriters to prepare papers for their classes; today they use computers. Does that make computers and typewriters complements or substitutes? Use a supply-and-demand diagram to show what happened to price, quantity, c..
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