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Explain why all firms do not price discriminate. (Be sure and include the 3 requirements to price discriminate.)
If a nonbinding price floor is imposed on a market, then:
After the September 11th attacks, one division of the Pentagon began to set up a Policy Analysis Market (PAM), a prediction market for political events in the Middle East. Suppose Chad believes that the price of oil will be higher in the future and b..
Netflix is the largest online DVD rental service offering flat rate rental-by-mail and online streaming to customers in the United States. Currently, there are approximately 8 million subscribers. Suppose Netflix increases their average flat rate by ..
Compare and contrast the two approaches of GDP computation mentioned in the textbook. Explain which approach you think is more reliable and gives more accurate estimates of GDP. Provide two examples—one of the U.S. and a second of another nation—to s..
There are wide differences across countries in the share of health resources spent on drugs. Describe possible economic and non-economic factors that may contribute to the variation.
What is the numerical value of the saving rate maximizes steady state output per effective worker? Clearly explain why households would have a problem with this saving rate. In the steady state, what are the growth rates of Y /(EL), Y /L, and Y ? Pol..
What is the effect, if any, of this new project on the value of the stock of the existing shareholders?
Yolanda runs a bulldog farm and when she employed one person, she produced 1,000 bullfrogs a week. Construct Yolanda's total variable cost and total cost schedules. Illustrate what is Yolanda's total fixed cost.
Crossing the San Francisco Bay] There are 2 main ways to enter San Francisco from Berkeley. The Bay Bridge provides access by car and takes 10 minutes if it is not crowded. In this problem, explain what externality arises from the use of the Bay Brid..
Suppose there are only two people in society. The demand curve for person A for mosquito control is given by qA=$100−P. For person B, the demand curve for mosquito control is given by qB=$200−P. Suppose mosquito control is a nonexclusive good – that ..
Firms raise capital from investors by issuing shares in the primary markets
For each situation described here determine the type of unemployment: Steelworkers losing their jobs due to decreased demand for steel. A college graduate waiting to accept a job that allows her to utilize her level of education
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