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Conventional economics assumes that individuals are mostly rational. That is, they do they best they can with the available resources and knowledge to achieve their goals. Behavioral economists have called into question these assumptions. Is the conventional starting point of rational choice still relevant? How do institutional features (firm management incentives, legal incentives, etc...) the degree of "rationality" observed by economists?
Suppose you have been tasked with regulating a single monopoly firm that sells 50-pound bags of concrete. The firm has fixed costs of $30 million per year and a variable cost of $4 per bag no matter how many bags are produced.a. If this firm kept on ..
The own-price elasticity is related to changes in quantity demanded. Cross-price elasticities are related to changes in demand. Explain this statement
what is the output level does the marginal cost curve cross the average cost curve. Compute her accounting and economic profits.
The university bookstores received 4 million euros from students in exchange for the books. Illustrate what is the total contribution to GDP from the above events.
As a general rule, is it safe to assume that a lower interest rate will encourage significantly lower financial savings for all individuals? Explain.
What factors determine the sensitivity of net exports to the interest rate? Consider the cases where net exports are very sensitive to the interest rate and where they are very insensitive. Compare the effect that an increase in the money supply has ..
1) What are the equilibrium price and quantity of natural gas in a competitive market?
What is the idea behind the "beggar-thy-neighbor". What are the main difference between the national and international lender of last resort?
Apply your understanding and concepts from microeconomics, to investigate and summarize the major characteristics of the emerging market form in the telecom
In "Will Kellogg: King of Cornflakes," author Burton W. Folsom, Jr argues that it was only due to the support of his brother, J.H. Kellogg, that Will Kellogg ever rose to fame and fortune. what effects does minimum wage have on employment. How would ..
For each of the following utility functions, calculate (or figure out) the MRS and sketch out an indifference curve for U=4, plotting at least 2 points on each curve, and explain whether the preferences violate the diminishing MRS or convexity of ind..
What course of action will benefit the company in the long-term - eliminating all perks, retaining all perks, or eliminating some perks while keeping others?
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