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Explain the consequences of a thin market.
Put in plain words the concepts of adverse-selection and moral hazard.
Clarify the pros and cons of the free-rider problem.
Explain why a price-fixing cartel is difficult to maintain.
Evaluate the distribution of income in the United States and issues relative to inequality.
Explain 2 ways subsidies led to appalling behavior.
Give explanation of how wages are determined in competitive labor markets and explain why wages differ from one occupation to another
Identify firms that periodically shut down their operations. What are the conditions that exist when they shut down their operations and the conditions that exist when they resume their operations? Explain your reasoning.
The discount rate is the interest rate on loans that the Federal Reserve makes to banks. Banks occasionally borrow from the Federal Reserve when they find themselves short on reserves. A lower discount rate_____ banks' incentives to borrow reserves f..
What is the impact of opening trade on the real rental on capital.
The supply curve for product X is given by QXS = -420 + 10PX . a. Find the inverse supply curve. P = + Q b. How much surplus do producers receive when Qx = 420? When Qx = 960? When QX = 420: $ When QX = 960: $
Going to medical school and specializing in a surgical residency is extremely profitable, and the best evidence to support that is the high annual incomes earned by surgeons.
A retailer has an exclusive license to sell a line of handbags. The bags are so distinctive that consumers do not consider any competing offerings to be close substitutes. The retailer thus can be treated as a monopoly. The demand for the handbags is..
Suppose the airline industry consists of two firms, A and B. These two firms engage in Cournot competition with each other over a certain route for which inverse demand is P(Q) = 1000 − Q with Q = qA + qB. Solve for the Cournot equilibrium price. Sup..
Let market demand in the trinkets industry be given by Q(P) = 55−P. There are only two firms in the industry, and the total cost function for each firm be given by C(qi) = 10 + 25q, where i = 1, 2. Find each firm’s Cournot-Nash equilibrium output, pr..
How might it be possible for the unemployment rate to still increase? Provide an example, i.e., provide a scenario with numbers, to support your answer
Thus, the second investment was $120, the third investment $140, and so on. If she continues series of investment 20 years, what will be the value of the investments at the end of that time?stock? d. None of the chemicals are in stock?
q1. use the internet to research an oligopoly not discussed in the text. from the e-activity describe the oligopoly you
Suppose that the government decides to increase G. Using a diagram, determine the equilibrium e ects of this shock on aggregate output, consumption, employment, and the real wage. Show that increasing G can potentially increase welfare. Compare your ..
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