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When a good is limited, some means must be found to ration the scarce commodity. Some examples of rationing devices are auctions, ration coupons, and first-come first- served systems. What are the strengths and weaknesses of each? Explain carefully in what sense a market mechanism "rations" scarce goods and services.
Suppose that Iggi and Kurt begin trading ice cream and waffle cones with each other. Elucidate price of waffle cones (in terms of ice cream scoops) would benefit both Iggi and Kurt and make both individuals willing to trade.
For decision making for the firm with market power, fixed costs are:
The behavior of almost everyone indicates that people believe they will be better off if they earn a larger income, because a larger income means the ability to acquire more of what they want almost, but not quite, without regard to what it is that t..
You’ve just purchased your first home for $360,000! Your 30 year mortgage is $300,000. Your annual mortgage payments are $24,000. What interest rate is the bank charging you? If instead you had the choice of making monthly payments of $2,000 for 30 y..
q1. suppose that there are only 2 inputs i.e. labor and natural resources which produces 2 goods i.e. movies and
Which competitive pay policy would you recommend to an employer? Why? Does it depend on circumstances faced by the employer? Which ones? What are the differences between merit pay and incentives? Why might an organization choose one or the other?
Discuss possible hold-up problems, importance of long term contracts, and possibility of underinvestment in labor that might occur under such compensation schemes.
Would environmentalists favor command-and control policies as a way to reduce pollution? Why or why not? From an economic perspective, is it sound policy to pursue a goal of zero pollution? Why or why not?
q1. a. why does an exporter face a foreign exchange risk? how can the exporter hedge its foreign exchange risk?b. what
What happens to Bond prices, quantities and interest rates if (Make sure to include the supply and demand graph for bonds for each question :
The players are needed to simultaneously and independently select positive numbers. Find out the Nash equilibrium of this game.
Explain how can changes in macro environment affect industries through the microeconomics factors of demand, production, cost and profitability.
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