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By using an appropriate diagram show that the imposition of a unit tax on a particular good or service causes a welfare loss. Explain the reason for this welfare loss.
Gordon lists his old Lionel electric trains on eBay. He sets a minimum acceptable price, known as his reserve price, of $75. After five days of bidding, the final high bid is exactly $75. He accepts the bid.
Briefly explain why as output increases total cost eventually rises faster than total revenue for a perfectly competitive firm.
Are people helped more if production results in a loss than if it leads to profit? Is there a conflict between production for people and production for profit?
A number of states, California and Illinois for example, have recently experienced fiscal problems because tax revenue has not kept up with expenses. States and cities have defaulted on debt in the past. Give an argument for or against the idea of th..
What is the internal rate of return on this investment? Assume that the cab is paid for at the beginning of the ?rst year, but that the annual cash ?ows happen at the end of the year.
Imagine there's only one movie theatre near a school campus. Local demand for movies is given by: What is the profit function? What is the theatre's maximizing q* and p*?
A case study in the chapter describes a phone conversation between the presidents of American Airlines and Braniff Airways. Let's analyze the game between the two companies.
Distinguish between fiscal and monetary policy. What type of fiscal and monetary policy could be used to stimulate the economy in a recession? What is the relationship between public sector borrowing, taxation and government revenue?
Using the standard 2 periods model with period 1 on the x axis and period 2 on the y axis answer the following questions. The household has period 1 income of y, period 2 income of y’ and faces a market interest rate of r.
How does analysis of demand contribute to business decision making give your answer with reference to the responsibilities of a sales manager?
in your quest to understand how your employees would be affected by any of the decisions you are going to make you also
a pharmaceutical company conducts a study to evaluate the relationship between length of time taking drug x and size of
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