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Assume costless negotiation. A farmer and a rancher are located on opposite sides of a lake. If the farmer uses fertilizer, then the rancher is unable to use the lake's water for her cattle. True, false or Uncertain: According to the Coase Theorem, the rancher should not care whether the farmer or the rancher owns the lake. Explain why for your answer.
Farm must decide whether or not to purchase a new tractor. The tractor will reduce costs by $2,000 in the first year, $2,500 in the second and $3,000 in the third and final year of usefulness. The tractor costs $9,000 today, while the above cost savi..
Use of the term "behavioural economics" has been criticized on two accounts: redundancyand ambiguity. Briefly explain these two criticisms and determine whether they have anybearing on the merit of this line of economic study.
Two firms compete in a market to sell a homogenous produce with inverse demand function P = 400 - 2Q. Each firm produces at a constant marginal cost of $50. Use this to compare the output and profits in settings characterized by Cournot, Stackelberg,..
There is no uncertainty about the future. The consumer needs to save an amount this year that will allow her.
Globalization and technology developments have led to some significant changes in the global economy. Discuss the importance of such changes to the United States. What is the impact upon supply chains? Optional: Use your own company as an example
Research one contemporary case of trade restriction, implemented by any nation. Research your topic, using at least 2 sources, and write a brief report (approximately 2 pages) on your findings.. Sources are documented properly. (MLA or APA style).
During an outbreak of disease there is a test that can identify the disease early, saving $10,000 in treatment costs per case identified. This test identifies the disease 70% of the time in those infected and costs $500 per test. Another, more expens..
Suppose we have an agricultural valley 100km by 50km, with a polluting electricity power plant. The power plant causes pollution problems on a narrow strip of land downwind of the plant, and within this valley 10km in length and 500 m in width, but n..
Consider two hypothetical countries. In Country A, 20 percent of the labor force is unemployed for half the year and employed for the other half; the remaining 80 percent of the labor force is never unemployed. Discuss which of these countries seems ..
llustrate what is maximum amount it would be worth to shareholders to elicit high CEO effort all time rather than low CEO effort all time.
A number macroeconomic variables decline during recessions. One of these variables is the GDP. Empirical studies indicate that the long-run trend in real GDP of the USA has an upward trend. How is this possible given business cycles and macroeconomic..
Explain why study pure competition if actual purely competitive markets do not exist? What can we learn from highly competitive markets. Briefly discuss.
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