Reference no: EM131431200
Assignment
Instructions
-If you consult any sources, you must cite them properly.
-Label the axes of any graphs you draw.
-Do not exceed the space allotted for each question.
-Format is either double or single and a half-spaced, 12 pt. font, and 1 inch margins.
1.
a. Whenwecalculated the deadweight loss of monopoly in class, we assumed that both the monopoly and the competitive firm had the samemarginal cost function. Explain what would happen to the deadweight loss to society if the monopolist's marginal cost was lower than that of a competitive industry. Think of one or two examples of monopoists with zero marginal cost. This question requires a graph which does not count towards the page limit.
b. If a natural monopoly is regulated to make zero economic profit, it will produce less than a competitive industry. On the other hand, if a regular monopoly (not natural monopoly) is regulated to make zero economic profit, it will produce more than a competitive industry. Are these TWO statements true or false? Explain why. At least one graph is required for this question.
c. Physicians often charge poorer customers lower fees for medical services. They usually explain this as a charitable gesture. Alternatively, could this be a profit-maximizing strategy? Explain. (Do not complicate this question by including health insurance, please.)
2. Traditional games of "chicken" typically have a winner and a loser with the winner adopting some kind of commitment strategy to force her opponent to swerve and lose the game. The readings," Release Dates" and "Release Dates 1" discuss some of the strategies used in the movie industry. Use an example from the business world (not movie release dates) to discuss what factors are behind commitment and accommodation strategies in these types of games. What is the best way of committing to a "stay" strategy? Should you always accommodate and "swerve" once your opponent has committed? Why or why not? A game matrix is optional for this question. It does not count against the page limit.
3. Give an example of (i) a positive externality, and (ii) a negative externality and explain how a social inefficiency is created in each case. Explain why this is a market failure. Suggest a solution to the externality problem in each of your examples and explain how it would work in practice. At least one of your solutions must be free-market based. Your examples may not come from class or from the text. Originality will be rewarded! Graphs are optional.
4. Collusion is more successful in a game that will continue forever or in a game with an uncertain ending time rather than a game with a known end time. Is this statement true? Carefully explain your answer.
|
Property of the genetic code
: Among many other species, pigs, mice, and bacteria express jellyfish green fluorescent protein (GFP) genes and glow. Discuss which is the property of the genetic code that makes that possible?
|
|
Confidence interval for true proportion of graduate students
: Find a 99% confidence interval for the true proportion of graduate business students who have a job offer for each degree program.
|
|
Wall street journal related to a topic covered in class
: Choose an article in the Wall Street Journal related to a topic covered in class. Your will need to complete the following for this assignment. Identify the name of the article, author, date, and page number. Summarize the article by highlighting the..
|
|
Draw two production possibilities curves
: Economy A produces more capital goods and fewer consumer goods than Economy B. Which economy will grow more rapidly? Draw two production possibilities curves, one for Economy A and one for Economy B. Demonstrate graphically how one economy can gro..
|
|
How a social inefficiency is created in each given case
: Give an example of (i) a positive externality, and (ii) a negative externality and explain how a social inefficiency is created in each case. Explain why this is a market failure.
|
|
Which economy will grow more rapidly
: Economy A produces more capital goods and fewer consumer goods than Economy B. Which economy will grow more rapidly? Draw two production possibilities curves, one for Economy A and one for Economy B. Demonstrate graphically how one economy can gro..
|
|
Allocation for external education and travel for education
: As a department supervisor, you have long been a believer in continuing education and training for your employees. You and two or three of your senior employees have served as instructors. How would you react if you were left with no allocation for e..
|
|
Beginning of the annual budgeting process
: As a department supervisor, you have long been a believer in continuing education and training for your employees. You and two or three of your senior employees have served as instructors. At the beginning of the annual budgeting process, you learn t..
|
|
General biology of streptococcal toxic shock syndrome
: Describe the life cycle or general biology of Streptococcal Toxic Shock Syndrome GAS (Group A Streptococcus). How can this disease be prevented? How many people are affected worldwide annually and where is the disease most prevalent?
|