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You hire a contractor to remodel your house. Identify three potential areas where asymmetric information and the principal-agent problem may be present. What are ways to mitigate the problems? Do you think having local government representatives inspect remodeling and building activities helps to reduce any of the problems? Explain your answers.
Use the classical theory of distribution to predict the impact on the real wage and the real rental price of capital of each of the following events.
Explain market efficiency and identify and distinguish between the different types of market structures; compare and contrast the similarities and differences between their characteristics.
Suppose a representative firm in a perfectly competitive market has short-run total costs of TC = q2-50q+1000. Find the representative firm’s short-run supply curve. Find the market supply curve if there are 350 firms in the industry..
what would the benefits of each action be (besides emissions reduction)? what would the costs of each action be? How would you decide what was the best level of emission reduction?
A convenience store manager earns a base salary plus small bonuses for each of ten different possible monthly milestones he meets. Typical managers can meet half of these milestones. Do they miss the others by a little or a lot?
An industry consists of three firms with sales of $235,000, $680,000, and $315,000. Calculate the Her find a hl-Hirschman index (HHI). Calculate the four-firm concentration ratio (C4).
An increase in the interest rate is expected to cause the number of people attending college to:
q1. if michael has 48 to spend on cola and pretzels what combination should he purchase in order to maximize his
Illustrate what happens to aggregate output and the price level in each case.
Assume you are assigned to conduct an audit of a municipal police department that has been awarded a state and federal grant to reduce driving while intoxicated violations over an 18- month period. What documents, statistics and analysis would you wa..
Conforming is changing one's beliefs, accepting both the goals and the means of society. What if conformity does not work? What if some individuals who work hard all their life and still aren't be able to achieve wealth?
what happened to real output? by how much would the price index have had to rise for real income to remain constant?
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