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Please evaluate these statement and post a reaction. Do you agree or disagree?
1) In a market economy government intervention may sometimes be necessary and desirable.
2) Government action may at times improve market outcomes.
Bessimer Electronics manufactures addressable actuators in one of its Maquiladora plants in Mexico. The company believes that by investing $24,000 each year in years 1, 2, and 3, it will avoid spending $87,360 in year 3. If the company does make the ..
__________can lead to a situation where, even if sellers are faced with a situation of _______________, they will decide not to cut prices for awhile because they know that buyers in this situation will not react by purchasing a _______________ .
The market demand curve is Q = 38 P. There are two Örms: Örm 1 and Örm 2. One Örm has MC = 2 and the other MC = 5. They choose outputs simultaneously (the Cournot model). (a) Find an equation for 1ís reaction curve. (b) Find an equation for 2ís react..
Problem 1.2 A justification for job training programs is that they improve worker productivity. Suppose that you are asked to evaluate whether more job training makes workers more productive. However, rather than having data on individual worker..
The problem is to choose x to maximize f(x;a) = ax- 3x^2, where á is exogenous, subject to the constraint. Calculate the first-order condition for this problem. For this problem, which values of x are on the boundary, and which are in the interior?
As a financial analyst, you are tasked with evaluating a capital budgeting project. You were instructed to use the IRR method and you need to determine an appropriate hurdle rate.
Suppose the U.S. economy is in a recession and faces relatively high inflation. List the twin problems which policymakers face. List the monetary policy approaches the Fed could take to resolve each problem (i.e, do not list the policy tools—just des..
Market demand is Q = 335 - p and the firms play Cournot. What is the Herfindahl-Hirschman Index of the industry?
Discuss contributions of competing and dominant school of thought to evolution of labour economics; mention paradigm differences and distinctions between old labour economics and new labour economics.
Suppose that Ian and Mike are cottagers on opposite sides of a small lake. Ian values electricity at his cottage at $500 and Mike at $700, but in order to get electricity for their properties a trunk line costing $1000 must be built. If they are unab..
What are some of the steps that the Federal Reserve took in 2008 to prevent further contractions of the economy and money supply? What were the banks' reactions?
Two consumers Justin and Cindy of the same product have the following demand curves: Q1 = 500 – 10 P and Q2 = 500 – 20 P. The marginal cost (MC) for the firm is $10. Calculate the prices when the firm discriminates between the two consumers. Is this ..
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