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Economists tend to ask two questions in a bilateral contracting situation: Is the outcome efficient? How are the gains, distributed? a. Suppose that landlords and tenants care only about the expected or average gain from the contract, and not about risk. Comparing a sharecropping contract to a fixed-rent contract: which of these is efficient? Explain. [4 points] b. Now, suppose that tenants lack assets and do not have access to insurance or credit markets. They are therefore in a poor position to bear risk. Can this help explain the persistence of sharecropping contracts? Explain.
a) Find the equations for total cost and total revenue. b) What is the total number of persons that will allow the place to just break even?
If the wage elasticity of labor supply is negative, what can we say about the slope of the labor supply curve and the relative sizes of the income and substitut
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How does Mancur Olson explain differences in economic performance of nations by the concept of public goods?
(A) What is the EOQ for the mowers? (B) What will be the total inventory costs if the EOQ amount is ordered?
What does this say about the elasticity demand for insurance products?
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Flu shots have a constant marginal cost of production of $3 per shot. What is the deadweight loss associated with the positive externality?
A machine shop manufactures custom brake disks for high performance cars. The shop needs to meet a demand of 2000 units per year. For each production run there is a setup cost of 1800 dollars, and there is a cost of 50 dollars per unit for materials ..
A sum of money Q will be received 6 years from now. At 5% annual interest, the present worth of Q is $60. At the same interest rate, what would be the value of Q in 10 years?
Suppose that the demand curve for wheat is Q = 100 − 10p and the supply curve is Q = 10p. The government imposes a price ceiling of p = 3. Describe how the equilibrium changes. What effect does this price ceiling have on consumer surplus, producer su..
After 25 years explain how much larger is Country B's economy the Country A's economy. Why is the answer not 25 percent.
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