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What is the externality associated with an individual driving on a congested highway? How do tolls help alleviate this externality? How should tolls be set? (Hint: Would you always want the toll to be the same all day?)
Assume the DJIA closed at 12,487 last night. The divisor is 0.123017848. Assume that 29 of the stocks in the index were unchanged today. One stock increased in value from $54.80 a share yesterday to $56.90 a share today. What is the DJIA index value ..
Use the aggregate expenditure model to explain the following statements from the opening news article.
Do you think the roles of CEO and chairperson of the board of directors should always be separate? Why or why not?
In 2014, Coca-Cola announced that top executives would have bonuses linked to the company’s revenue from soft-drink sales. Explain whether the company’s annual profit will necessarily increase if the executives achieve the results necessary for bonus..
Explain how does the trade deficit affect U.S. economy. Explain how does it affect the firm or organization you work for.
using the regression results and the other computations from assignment 1 determine the market structure in which the
Suppose there are two goods being produced in the economy: robots and wheat. Robots are a capital intensive good and wheat is a labor intensive good. Suppose that there are two countries: France and Brazil. France is capital abundant and Brazil is la..
A company currently pays a dividend of $2 per share (D=$2). It is estimated that the company’s dividend will grow at a rate of 20% per year for t the next 2 years, then at a constant rate of 7% thereafter. The company’s stock has a beta of 1.2, the r..
In 2008, the Board of Directors and shareholders of Anheuser Busch agreed to be acquired by a Belgian Brewer (InBev). Prior to the merger, InBev made many pledges to AB regarding how the company would operate after the merger, how its employees would..
Which region appears to have a comparative advantage in producing cut flowers: Colombia or California? Explain. How have U.S. consumers of cut flowers been affected by the cutback in Colombian imports?
Suppose that the citizens of Hungary can purchase all the oil they desire at the going international price. If the Hungarian government levies a tax on oil, who bears the burden? Illustrate your answer wit h a supply and demand diagram.
Write an essay titled “Is there price discrimination in the US Airline Industry?” In preparing your essay please address the following questions: Which general conditions need to exist in a market for price discrimination to be possible? How do carri..
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