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-Does the product have widespread benefits for the many that outweigh any ill effects for the few? For instance, the debate about genetically-modified foods.
-Does the consumer know the product is harmful? Has it been communicated as such, and can a label cover every eventuality?
-Do the harmful impacts affect only the user or do they also affect others who were not involved in the purchase decision?
Which of the following is an example of price discrimination?
Suppose that the most popular car dealer in your area sells 10 percent of all vehicles. If all other car dealers sell either the same number of vehicles or fewer, what is the largest value that the Herfindahl index could possibly take for car dealers..
Calculate the dollar rate of return and the real rate of return on following assets. A painting whose price rises from to in a year if the painting’s price rises from $150,000 to $200,000 in a year and prices of other goods and services rise by 10%.
For each group identified in bold type below, use labor-leisure model to illustrate graphically and then explain the change in the quantity of leisure (and labor) desired. Be sure to explain how the group’s labor force participation rate is affected.
If the current minimum wage is $7.50 an hour, there are 10 million workers who earn the minimum wage, and the elasticity of demand for low skilled labor is -0.2.
Union membership has been declining in the U.S. private sector for many years. What do you think are the major reasons for this? Why isn't this true for the public sector? Describe the actions that an employer may take when a union attempts to organi..
Suppose that Ben has $90 to spend on two goods, movie (M) and hamburger (H). The price of a movie is $10 and the price of a hamburger is $2. Ben’s preferences are represented by the utility function: U(M, H) = M *H^2. What is Ben’s optimal choice bet..
when the colts won the super bowl the demand for peyton mannings jersey was p 210 - 0.002q with a corresponding
AutoTrader.com would like to estimate the number of years owners keep the cars that they purchased as a new vehicle. The following data shows the age of seven vehicles that were sold for the first time by their owners. Using this sample, the 90% conf..
Static Economics A waterpark is the only one in a small town. Based on past summer season’s ticket sales, they estimate that the relationship between the monthly demand D (in persons) and price of a ticket p (in USD/person) in the town is described b..
Others provide photos, detailed assessments as well as complete maintenance records. Which group of clients receive higher prices and why?
Table 1 is a payoff matrix for Harvard and Yale. They were recently caught colluding on tuition rates and can no longer confer on rates. The payoff matrix describes the tuition revenues they will each receive by charging high or low tuition rates. Wi..
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