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Someone says, "Pollution should be reduced until the marginal social benefit of further reduction is zero." Explain why an economist would agree (or disagree) with this statement.
Suppose you are Coca-Cola and you are competing with Pepsi-Cola. Both of you would make more money if you advertised less - but you find yourself in a repeated prisoner's dilemma where you both are deciding to advertise. How would you prefer to deal ..
Suppose the economy were operating at full employment and firms become increasingly optimistic about the future. They increase their investment spending; graphically, that means that their investment schedule shifts to the right. (Draw a graph to exp..
Louisa is managing a training program for a major bank. She designs the following experiment to assess the effect of sleep on learning. A group of trainees is given a 3-hour session on some task, followed by a 2-hour test on what they have just learn..
A proposal for investing 8.5 million has been made. The investment would return end of period payment of 1.15 million for 15 periods at which time the investment could be sold for 2.6 million. What is the internal rate of return for this proposal?
In a six-firm market, if all firms charge the monopoly price, the profit equals $120,000. In that same six-firm market, if all firms instead charge the prevailing price, the profit is $60,000. If the pricing period is one-month long, what is the maxi..
Greece, Portugal, Ireland and Spain are all members of the European Union. All have gotten themselves into sovereign debt trouble (the government can’t pay its debts). Greece recently received a bail-out package from the EU after months of drama. Spa..
Discuss the benefits of following Windows standards for menus, positioning of buttons, colors, etc. Answers might include user familiarity and comfort.
Define and explain what the production on function and the marginal output curve are. Graph the production function and the marginal output curve. How are the two related? Indicate where the ranges of
Suppose the firm has a production function of the form f(k,l,m)=(klm)^1/4 and faces input prices (1,2,8) for (k,l,m) respectively. What is the firm's cost function? What is their supply function? How much capital k does the firm use to produce q=4?
The city of Sundown is considering a plan to build a convention centre to revitalize the downtown area. The project requires hiring workers in the construction union. Because of unionization, the workers’ wage rate is above the value that would be de..
How does private ownership influence the incentive of indi- viduals to (a) take care of things, (b) conserve resources for the future
The terms of trade are the
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