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Q1. Some fields have large enough quantities of both oil also natural gas that coordination must be achieved for the production of both, rather than oil alone as in our examples. Will fields with both oil also gas have greater difficulties in unitization than fields with oil or gas alone? Elucidate
Q2. Why might a parent company like McDonalds or Hilton choose to franchise its local outlets rather than own them also staff them with employees? In many smaller cities all McDonald's outlets are owned by the same franchisee. Why is (or isn't) this fact consistent with our discussion of specific investments?
a homeowner can insulate his house and save $50 each year in heating bills. If the interest rates are 6%, should the house owner insulate or not.
What is the output of each firm if they collude to produce the monopoly output. What profit does each firm earn with such collusion.
Elucidate that contract align the incentives of the new vice president with the goals of the owners.
Find the subgame perfect equilibria of the variant of the game in which the post-entry competition is a game in which each firm chooses a price, rather than an output.
Prepare a table with values from all four cases as well as compare the sensitivity of the model solution to changes in parameter values.
A price floor reduces the amount of a product that consumers buy because it keeps the price above the competitive equilibrium of market.
You believe that there is an equally likely chance that this information will either double expected chances of finding a well, or inform you for certain that the area is not commercial.
If nominal output is $5.28 trillion also the GDP deflator is 20 percent higher than what is the output in the base year other than real output.
Representatives were to logroll (trade votes) to get their preferred policy to pass, what would be the result. What are the total benefits from each project.
Illustrate types of government programs would be most effective in combating each type of unemployment.
Suppose it had begun an expansionary policy early in 1981. What does the text's analysis of the inflation unemployment cycle suggest about how the macroeconomic history of the 1980s might have been changed.
Explain how the U.S. economy may self-correct back to the long-run equilibrium where actual GDP equals to full GDP and there is full employment.
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