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Which of these outcomes would we NOT expect from a government-supported cartel, as compared to a competitive market?
A. Higher prices
B. Lower output
C. Increased competition over time, as new firms enter the market
D. Funds flowing from the cartel to the government
In the following example each person is an island. We have James and Kate who engage in international trade with each other. James is lactose intolerant and only produces cheese. Kate is caffeine intolerant and only produces coffee. Who has a negativ..
Plot the time series of each series_ Does each series appear to be stationary? Examine the ACF and PACF of the residuals from part (d). Do they appear to be stationary?
In the numerical example given in the text, the inverse demand function for the depletable resource is P = 8 -0.4q and the marginal cost of supplying it is
Assume you believe that income is a good proxy for ability to pay. What decisions what you have to make in order to make this operational?
What should Honda and Toyota do to manage this short term average price increase.
Explain how this investment capital is transformed into fixed capital goods, new technology, and cost reduction using new methods of production.
The demand for mini cassette players can be characterized by the following point elasticities: own price elasticity= 2 in absolute value, cross price elasticity with AA alkaline batteries= -1.5, and income elasticity = 3.
The following table contains the ACT scores and the GPA (grade point average) for eight college students. Grade point average is based on a four-point scale and has been rounded to one digit after the decimal. Estimate the relationship between GPA an..
Consider an initial stock of 5000 tons of high grade ore. The demand function for this ore is P = 2400 – 0.2Q (Q is measured in tons/year), and the cost of extraction is constant at c = $200/ton. The discount rate is r = 0.10. Using a discount rate o..
What fraction x of your money should you invest in risky asset in order to maximize your utility. What happens if A is large.
A 50-kilowatt gas turbine has an investment cost of S40,000. It costs another S17,000 for shipping, insurance, site preparation, fuel lines, and fuel storage tanks. The operation and maintenance expense for this turbine is $500 per year. Additionally..
Will each of the following transactions be included in GDP for the United States? Explain why or why not
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