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Answer two of the following three questions (6, 7, 8). Be very clear. Each question is worth 15 points. For each of the following examples determine whether, on efficiency grounds, the contract should be performed or breached. If you recommend the former, explain in one or two sentences why. If you recommend the latter, identify the contract doctrine that would excuse promise breaking. Use the front and back of this sheet. Indicate which question you are answering.
Should college be subsidized? All U.S. states subsidize education for college students, mostly by charging below-cost tuition. Nearly free tuition is available in many European countries and has been proposed in California. Should the government subs..
1. Best Buy offers a protection plan for new smartphones at $132. The absolutely most expensive iPhone you can buy right now is $700. Assume for a moment you are a very cautious but forgetful person:
A Material Requirements Planning (MRP) is most valuable in industries where a number of products are made in batches using the same productive equipment and with companies involving
Suppose the standards of the school are lowered so that earning the degree no longer entails psychic costs for anyone. The cost of earning the degree is now purely monetary ($c) and the same for both high-ability and low-ability workers. Under the as..
What are the five factors that influence comparative advantage? How can the government use different fiscal policies to [a] lower unemployment and [b] reduce inflation?
Please explain how the value is created using marketing and supply chain strategies by the dealer/retailer in this supply chain, Lowe's Companies.
This is where the story that Country (A) broke all the financial rules begins to fall apart. In a lot of ways, the IMF's intervention was typical. Country (A) sharply reduced government spending and increased interest rates all the way up to 18 perce..
Sketch a perfectly competitive firm operating in short-run equilibrium but making economic losses. Put in all the functions necessary to show that the firm should stay in business in the short-run despite the losses. Shade in the area of loss shown b..
You are the owner of a fast-food restaurant. Given a new item that you recently advertised, you experience additional demand for your business that you do not want to ignore. Identify your fixed and variable costs at your fast-food restaurant, and ex..
What parts of the external environment ( general, industry, and competitive) do you believe BP considered or didn't consider prior to drilling off the gulf coast? what should the wedding business owners now consider in their external environment?
Suppose there are ten firms in a monopolistically competitive industry, each with an equal share of the market. The market demand is given as Q = 10200 – P. Each firm has a total cost function TC = 51000 + 500q2. Assuming the industry is in long-run ..
What is the difference between relative factor endowments and relative factor intensities? What does the Hecksher-Ohlin theorem say about home versus foreign countries while they remain in autarky? What happened to the Leontief paradox when human ca..
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