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When a perfectly - competitive industry with entry/exit is in a long equilibrium, then (ignoring risk):
a). Firms are making the market rate of return on capital
b). Firms are making less than a market rate of return on capital
c). Firms are making more than a market rate of return on capital
d). Firms are making a zero rate of return on capital
Based on the concepts of moral hazard and adverse selection to a situation from your professional life. Explain the situation and how it was resolved.
______The term used to refer to the raw materials, components, completed or partially completed products, and pieces of equipment a firm uses is
If the United States is a net importer of a product that is being subsidized or dumped by Japan, not only do US consumers gain, but they also gain more than US producer lose from the subsidies or dumping. Explain why.
1. What are some of the advantages and disadvantages of mobile payment systems in (a) developed countries and (b) developing countries?
Is gasoline an economic complement of restaurant meal Are restaurant meals an economic complement of gasoline
Mr. Clifford: Now look around you. Where did all that stuff come from? And who made it? And why? Well, the answer is simple, but it's underrated. It's markets,
Joe makes monthly deposits of $1,000 into an account with an NAR of 8% and weekly compounding. What will this be worth in 5 years? (This can be done by converting both the rate and payments to weekly, monthly or annually)
Given the following data: Et = ¥125 = $1.00; Et+1 = ¥100 = $1.00; US interest rate = 20%. If the interest parity condition is expected to hold, interest rates in Japan should approximately equal (percentage)
Suppose the demand for this firm's services is given by P=2,000-Q and fixed costs are equal to $900,000. What is the optimal production rate?
Two important facts of decision life are that different people value the same things in different ways, and that most business decisions have several bene?ciaries, not just one. Thus, if the deciders select one alternative, the outcomes will please s..
Sid is a rational consumer who has been neither saving nor borrowing (he spends exactly his current income). a. Draw a diagram showing Sid’s endowment and current optimal consumption this year and next. b. Show how Sid’s behavior will change if the i..
2. Are the New York Yankees correct when they claim that revenue sharing simply rewards teams that do not try to win?3.Suppose that each team in a league has a
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