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Game theory suggests that, in the absence of patents, the privately motivated innovation decisions of firms might lead to:
a. too little innovation.
b. too much innovation.
c. the socially efficient level of innovation.
d. None of the answers is correct.
Juanita is deciding whether to buy a skirt that she wants, as well as where to buy it. Three stores carry the same skirt, but it is more convenient for Juanita to get to some stores than others. Assume that Juanita takes opportunity costs and the pri..
Which of the following situations is one in which the Fed will potentially pursue expansionary monetary policy?
Plot the demand and supply curves for this market. Show the equilibrium price, and quantity for electricity. Label consumer surplus, producer surplus, and cost of goods sold on the figure you have drawn. Compute equilibrium price (P*), equilibrium qu..
What is the difference between tax cuts imposed on higher-income households compared with lower- and middle-income households? Discuss the implications for the multiplier and the effectiveness of the tax cuts for boosting GDP.
What would happen if the Free Zone in central bank lowered the federal funds rate and buy securities on the open market? b-recommends that the central bank sua or lower the federal funds rate? why?
We noted in this chapter that foreign central banks, especially in Asia, accumulated large dollar foreign reserves after 2000. One persistent worry was that those central banks, fearing dollar depreciation, would shift their reserve holdings from dol..
Demand for good X is x=100-P, where P is the market price of X. A monopolist supplies this market and has a cost function 15x. When the monopolist produces his optimal level of X, what is the resulting dead weight loss on the economy?
Find the cost functions for the following firms: A firm with production function f(x1,x2) = min{ 2xl,3x2} A firm with production function f(xl,x2) = 2x1 +3x2 A firm with production function f(x1,x2) = In
show how consumers make purchase desicions, on the basis of each model of consumer desicion making cognitive, emotional, paasive.
?The depreciation of currency will: Which of the following topics is best characterized as a macroeconomic issue?
An increase in the number of fast-food restaurants
Determine tax that would in a monopolistic market producing socially efficient output. Assuming that no attempt is made to monitor or regulate pollution, which market structure yields higher social welfare. Discuss.
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