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The U.S. Postal Service is a monopoly provider of first-class mail delivery (other companies such as UPS and FedEx can deliver packages, but not first-class mail). Do you think this is an example of a cost-based monopoly, or is there some other explanation?
The annual income from a rented house is $12,000. The annual expenses are $3000. If the house can be sold for $145,000 at the end of 10 years, how much could you afford to pay for it now, if you considered 18% to be a suitable interest rate?
Ellucidate explain the broad decline in house prices that occurred in those years. Is the market currently in equilibrium.
Rising jet fuel cost recently led most major U.S. airlines to raise fares by approximately 15 percent. Explain how this substantial increase in airfares would affect the following:
1) Other things being equal, a reduction in taxes will 2) According to supply side economists, lower marginal tax rates will not necessarily lead to lower tax revenues because
In 400-800 words, list the four components of GDP and provide an example of each, explaining how each item affects you and the way that you live today.
What are primarily intended to address the problem of insuring people who do not have health insurance? Would a public national health insurance system reduce total spending on health care in our economy?
Consider a firm with market power that sells suits. The firm has two types of customers, A and B. There are an equal number of customers of each type. Type-A customers are willing to pay up to $100 for a coat and up to $50 for pants.
Suppose the only firm in an economy produces $10 worth of final goods in a year and only sells $9 of goods that year. We know that GDP can be equivalently be thought of as either total spending on new goods and services in an economy.
Calculate the official measure of the deficit in year t and calculate the correct (i.e. inflation adjusted) measure of deficit in year t.
Considering factors such as food supplies, population growth, water availability and renewable energy, compare the marginal costs and the marginal benefits of global warming and describe what an ‘environmentally sustainable' economy would be.
Some fields have large enough quantities of both oil and natural gas that coordination must be achieved for the production of both, rather than oil a in our examples. Will fields with both oil and gas have greater difficulties in unitization than ..
A price-discriminating monopolist of the 3 rd degree sells output in 3 different markets. Some, but not all pairs on the 3 linear market demand curves are given below.
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