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Firms often engage in corporate social responsibility. Discuss three reasons why a firm might elect to engage in such behavior. Under what conditions would corporate social responsibility generate increases in social welfare?
With the help of appropriate figure, explain the conditions for Pareto efficiency. Show how the Utility Possibility frontier (UPF) can be derived from the Pareto efficient allocations.
An accident occurred and an individual lose a leg. Show diagrammatically the utility functions before and after the accident. Show that if you were the Utilitarian, you would give more income to the individual after the accident, but that even after ..
A long the long-run supply curve of an increasing-cost industry that is characterized by perfect competition, all of the following can vary except. For the case of an increasing-cost industry, supply is
The type of planning conducted on a long-range basis by top managers is usually called
As the United States economy moves out of a recession, U.S. financial investors increase their purchases of stocks that are expected to earn a higher rate of return than they are currently earning on their savings account deposits.
In the past year, the price of dry-cleaning solvent doubled. More than 4000 dry cleaners across the country disappeared as budget-conscious consumers cut back. This year the price of hangers used by dry cleaners is expected to double. Explain the eff..
Recent Research indicates the second hand smoke from cigarettes endangers the health of those who are in sustained contact with smokers. Explain why the Market, operating on its own, will lead to an overproduction and over consumption of cigarettes.
Suppose that a firm's only variable input is labor. The firm increases the number of employees from four to five, thereby causing weekly output to rise by two units and total costs to increase from $3,000 per week to $3,300 per week.
if you were a strong supporter of free trade and in charge of U.S. international trade policy, would you cut tariffs and quotas, or would you negotiate with the nation's trading partners, maintaining trade barriers unless they lowered their also? dis..
Shopping malls typically lease retail space to a large number of clothing stores. When this group of retailers competes to sell similar but not identical products, they engage in what economists call ________________________.
A road building contractor has received a major highway construction contract that will require 50,000 m^3 of crushed stone each year for 5 years. The stone can be obtained from a quarry for $7.80/m^3. As an alternative, the contractor has decided to..
What do economies of scale, the exclusive ownership of essential raw materials used in the production process, and patents have in common?
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