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Will monitoring costs decline or increase when employees are paid the above-market equilibrium wages by the firm?
Why did the federal bond backing provision and the ability of national banks to hold reserves at other banks encourage nationwide bank runs and financial panics during the National Banking System?
Suppose Maria's preferences are represented by U(C,`) = 100ln(C) + 175ln(l) so that her marginal utility of leisure is given by 175/l, and her marginal utility of consumption, 100/C. She has 100 hours to split between leisure and work. If she wor..
The manager of a local monopoly estimates that the elasticity of demand for its product is constant and equal to –3. The firm’s marginal cost is constant at $20 per unit. a. Express the firm’s marginal revenue as a function of its price. Instruction:..
A chemical recovery system costs $30,000 and saves $5,280 each year of its seven=year life. The salvage value is estimated at $7,500. The after-tax MARR is 9%, the CCA rate is 20% and taxes are at 45%. What is the net after-tax annual benefit or cost..
What are the differences in the conclusions between the industrial organizations of perfect competition and monopoly?
Two identical firms save money from polluting. A firm’s marginal saving from emitting an amount e are given by 10-2e. The two firms differ in their impact on ambient pollution concentrations. Two units of emission from firm 1 result in one unit of am..
There are three types of plant: coal, natural gas, and hydroelectric. The three types of plants face the costs appearing in the table above.
Suppose the elderly as a group manage to lobby Congress successfully for a one-time wealth transfer, “paid for” by a tax on younger workers. Assume the elderly have a remaining life-expectancy of 10 years (over which the transfer will be spread), and..
What is the effect of bad weather for farming or some other temporary decrease in the availability of raw materials?
Based on what you have learned about monopoly markets and markets in oligopoly, which of these two do you believe is more harmful for the consumers and for the economy, and why? Do you believe all monopolies should be considered illegal?
Derive the cost function for the two-input, constant-returns, Cobb-Douglas technology. Fix one input and derive the short-run cost function. Show that long-run average and long-run marginal cost are constant and equal. Show that for every level of th..
Chevron Corporation is one of the largest integrated oil companies in the world. Its management is assessing the world marketplace and taking steps to sustain the company’s competitive position. Chevron is studying external and internal factors that ..
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