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Normative economics-Republicans versus Democrats Visit both the Republicans' (www.gop.com) and the Democrats' (www.democrats.org) Web sites. Identify an economic issue that both parties address and compare and contrast their views on that issue. Generally speaking, how much of the disagreement is based on normative economics compared to positive economics? Give an example of loaded terminology from each site.
A monopoly faces a demand curve of Q = 500 - 2P and has costs of TC = 100 + 10Q + Q^2 (Thus, you can solve MC = 10 + 2Q).
In a crowded city far away, the civic authorities decided that rents were too high. The long-run supply function of two-room rental apartments was given by q = 17 + 4p and the long-run demand function was given by q = 304 – 5p, where p is the rental ..
A heat exchanger cost $7500 in 2005 and must be replaced soon with a larger unit. The present unit has an effective area of 250 feet and its replacement should have an area of 350 feet. Replacement is anticipated in 2015 when the price index is estim..
What is the value of the project? And what is the optimal strategy to use natural gas vs. coal?
What if you used a rate properly accounted for risk, obtained by using the CAPM?
Please explain Allocative Efficiency and how the point of AE is found. i. Define it, ii. Discuss the significance of allocative efficiency relative to the model iii. Explain the 2 step process for finding the point of allocative efficiency on the PPC..
Now, the government realizes aforementioned situation that the one firm controls the industry. Economic officer from the government asks you to fix this problem. Provide your solution by applying the price regulation scheme and you have to give me a ..
A firm must decide whether to make a component part in-house or to contract it out to an independent supplier. Manufacturing the part requires a nonrecoverable investment in specialized assets. The most efficient suppliers are located in countries wi..
A manager of a clothing firm is deciding whether to add another factory in addition to one already in production.
Law of demand does not hold since attendance at the major league parks has dropped while at the same time ticket prices have fallen.
(a) Explain, in the context of the above scenario, what a sampling distribution is?
Initially Country A imports apples because the world price (PW, blue) is below the price that would apply (PA), in the absence of trade, in A; illustrated in diagram 1. Consumer and producer surplus are shaded in green and yellow respectively. show t..
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