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Please consider the market (supply and demand) of Uber drivers. The Uber driver supply curve contains all the current and potential employees willing to become Uber drivers (quantity for a given wage as wages are the price of labor).
(a) What kind of market do you believe Uber drivers most closely resemble - perfect competition, oligopoly or monopolistic competition and why? What do you expect will happen to the wage of Uber driver's over the longer term? Is the firm Uber a price maker or a price taker?
(b) Assume Uber faces public concerns over the wages of its drivers. Could the company could enact policies to increase driver salaries, especially given that anyone is free to become an Uber driver? If yes, what would you recommend? If no, why not?
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The Wall Street Journal article reported that large hotel chains, such as Marriott, are tending to decrease the number of hotels that they franchise to outside owners and raise number the chain owns and manages itself.
Suppose that you are in the short-run and the production function for your firm is given as: F(L,K)=K1/2L1/2 Also, in the short-run capital is fixed at K=16. You also know that the wage rate for workers is w=10, the price of capital r=20 and that the..
There are two goods: x and y. A consumer's utility function isu(x, y) = 5x2y + 10x3and that consumer has income of m = 189.18. What is the marginal rate of substitution for this consumer?19. Write out the Lagrangian associated with the consumer's pro..
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A newspaper is considering buying locked vending machines to replace open newspaper racks in the downtown area. The vending machines cost $45 each.
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