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Question: Governing business and regulation: Using a specific firm/industry example, explain Either the possible principal-agent issues faced by a firm and the potential solutions to these problems.
Or why the marginal social costs of production may exceed the firm's marginal private costs of production. In this case also explain also how such 'externalities' may be limited by government interventions.
two firms produce differentiated products and set prices to maximize their individual profits. demand functions for the
If firm A builds a large factory, the payoffs are (-2,-2) and (5,0). Draw a payoff tree and use backwards induction to solve for the Nash equilibrium
What are the income effects from an increase in the price level, P, for a household that has a positive value of initial nominal bonds, B0, if B0 is zero or negative?
Consider the use of commitment devices for individuals who decide to diet (for weight loss, general health, or other reasons). Discuss the different types.
A consumer's reservation price is the price at which a:
Describe the role played by expansion in the government sector (funded by budget deficit and public borrowing) in changing prevailing levels of unemployment and GDP.
Calculate the market equilibrium, Calculate the total surplus and How can the government increase total surplus - Identify one policy that the government could implement to reduce pollution.
crown cinema recently increased the price of a movie ticket by 5. as a result attendance dropped by 8. based on this
What actions could you take to reduce the bank's interest-rate risk - what dollar value of goods will the coin buyer have to exchange for the coin(s))? How many high quality coins will change hands? How many low quality coins will change hands?
Suppose demand is still described by P=5.10-0.80Q and supply is described by P=1.90+0.20Q. If there is a price floor of 2.94, what would be the quantity traded?
folk wisdom has it that when people lose their jobs they drown their sorrows in drink.economists have long challenged
Draw both of these curves (or use a spreadsheet if you want). What is the equilibrium price of apples in this market? How many apples will be sold?
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