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Using a graph explain the welfare impact of tariff on domestic consumers, producers, government, and national welfare in a) a small country b) a large country.
he estimates a repair cost of $150, Develop a decision tree for this situation and determine Kuroff's optimal strategy.
Describe why teenagers tend to accumulate low wages yet proportionally higher human capital than adult workers.
Gary has two children, Kevin and Dora. Each one consumes "yummiest" and nothing else. Gary loves both children equally.
Jet Blue Corporation continuously offers fare discounts to attract customers awareness about the company, increase market share and increase revenues on the routes in the USA market.
Can you come up with any examples of either adverse selection or moral hazard affecting you or someone you know in their family life, love life, or job? (Here’s one to get started on: Is an obnoxious guy or an interesting guy more likely to start a c..
The price elasticity of demand for Pete's chocolate chip cookies is 1.5. Pete wants to increase his total revenue. Would you recommend that Pete raise his cost or lower his cost of cookies. Explain your answer.
Ceteris Paribus is latin for. An example of ordinal measure would be. Which slope(s) may a supply curve not have? The fact that as we consume more of good we enjoy each subsquent unit less (1st hot wing vs. hot wing) is an example of what theory?
(Comparative statics analysis in the Cournot Model) Assume two firms produce the same homogeneous good, facing the inverse demand function P(q1+q2) = k−q1−q2, where k > 1 is a positive constant, q1 is the quantity produced by firm 1 and q2 is the qua..
If the demand curve is QD = 100 - 10P and there is a $1 price increase, then the elasticity of demand at P = 2 is 2. If the absolute value of a demand elasticity is less than 1, then
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..
Find the Nash Equilibrium of the game and explain why your result is the equilibrium. If the Nash Equilibrium the best outcome for the game? If not, explain how this outcome can be improved.
An article in the Wall Street Journal reported that large hotel chains, such as Marriott, are tending to reduce the number of hotels that they franchise to outside owners and increase the number the chain owns and manages itself. What type of agency ..
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