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After paying $1.00, you are allowed to open a newspaper vending machine (i.e. get as many as you want, theoretically). In contrast, a soft drink vending machine only drops one can after you pay the same amount of money.After paying $1.00, you are allowed to open a newspaper vending machine (i.e. get as many as you want, theoretically). In contrast, a soft drink vending machine only drops one can after you pay the same amount of money. Why? Please explain the difference in the language of economics.
When the market generates an equilibrium price, we know
Many automobile manufacturers routinely advertise the safety of their cars, yet airlines generally do not even mention safety in their advertising. Can you suggest an explanation for this difference?
Suppose that hospital A’s output is measured by numbers of admissions and the market price for hospital admissions is regulated by the government. Assume that the regulated market price for an admission is $1500. Hospital A has no fixed costs, and th..
The unsold computer is carried on XYZ's books as an $800,000 increase in inventory.
If an employee is transporting company materials and gets into a car accident, should the company be held responsible and liable for any damages? Would your stance differ depending on if the employee were on or off the clock?
Based on what you have learned about the relationship between TR and elasticity of demand, explain how an airline might take advantage of this information in order to maximize its profits? (Tip: How does an airline company separate the market of cons..
The maker of a leading brand of low-calorie microwavable food estimated the following demand equation for its product using data from 26 supermarkets around the country for the month of April: Calculate the price elasticity of demand. Compute the inc..
If a city government implements the living wage concept as a basis for paying its employees should it use the same minimum for all workers, or should workers with larger families receeive more? what would be the pros and cons of each approach?
People with disabilities face discrimination and barriers that restrict them from participating in society on an equal basis with others every day. Some of the barriers are that people in wheelchairs can't go anywhere by themselves, someone needs to ..
Consider a market where the price of the production is determined by p=60-Q. Initially there are Three Firms which all produce the same product. All three firms have zero marginal cost and zero fixed cost. In Nash equilibrium, all firms produce the s..
The Central Bank of Muji wishes to eliminate the recessionary gap while expansionary monetary policy. The central bank can do so by stimulating consumption and planned investment.
Why is organic food a positional good? What other ways do wealthy people have an advantage in avoiding pesticides? How does this relate to global inequality? How are organic foods produced, marketed, and sold in a capitalist society? Compare and cont..
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