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Suppose that the government dislikes producers of widgets and wants to punish them, but wants to avoid punishing consumers of widgets. It decides therefore to make widget sellers pay $5 in tax for every widget sold. Will this tax punish widget sellers? Will it punish widget buyers? Why or why not?
Hospitals are engaged in intense competition to fill maternity beds. What type of advertising would hospitals most likely use to advertise their new amenities like hot tubs in every room, filet mignon or lobster on the menu, and afternoon teas for th..
Does a tug of war between AVC and AFC eventually take place?
Assume that the salary of MBAs was normally distributed. If the mean salary of a MBA was $100K with a standard deviation of $10K. What is the probability that a MBA makes less that $70K or more than $130K?
You decide to go to your favorite fast food restaurant and have only $5 to spend. How does customer service at this restaurant influence your decision?
Your friend Gail is an electrician who does repair and installation work for small businesses and homeowners. She often has customers ask her if she will accept a credit card in payment for her services, but she has been reluctant to set up a credit ..
Suppose that your production facility can only produce 1,000,000 pills per year. Illustrate what is your optimal price and quantity given the production constraint.
Suppose the MWTP in periods 1 (now) and 2 (one year from now) is given by P = 8-0.4q. Marginal extraction cost = $2. r = 20%. The available supply is 20 units. Calculate the allocation of outputs across the two periods that maximizes the present valu..
Graphically show and verbally argue that a Walrasian equiblirium in an economy is Pareto efficient as long as preferences are locally non-satiated. How about convexity? ?s it important for this theorem to hold ?
Would the worker be better or if, instead of the health insurance, she was given a £100 per week pay increase which would be taxed at 20%.
Determine the after-tax cash flows for this investment. make adjustment in the DDB depreciation charges if necessary in any year in light of the SV of $20k
Describe the dominant characteristics of the industry (military) in which your company operates, addressing the following questions: Who are your main competitors? Are they significant barriers to entry? What is your company’s market share? What is t..
Explain how the Fed's use of its three tools of monetary policy affect supply and demand in the market for reserves and the equilibrium federal funds interest rate.
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