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Problems exist within the firm. There were problems of collective action, public goods, knowledge problems, and perverse incentives to name some. What were the three methods we discussed in class to help resolve such problems? What are some pros and cons to each of them?
When the economy is operating at full employment, why is an increase in aggregate demand not helpful to the economy?
Ted has been a fisherman all of his life. Ted realizes the risk he takes as a business whose market structure is a perfectly competitive market. Ted is analyzing whether he should stay in business. What is the lowest Average Total Cost that Ted can o..
We manufacturer automobiles given the production function q = 5KL where q is the number of autos assembled per eight-hour shift, K is the number of robots used on the assembly line (capital) and L is the number of workers hired per hour (labor). If w..
If firms are successful in product differentiation
In Illustrate what way do competitive markets have a "natural remedy" for discriminatory hiring practices.
Informal financial institutions and its system are important in serving the group at the bottom of the income pyramid. Explain the characteristics of informal financial institutions and the importance of its financial systems.
Jim sees commuting by bus and T as perfect substitutes (U = T + B), that is, he would exchange one commute by bus for one commute by T. The price of a bus ticket is $1.50 and the price of a T ticket is $2.00. Explain the relationship between the slo..
What are some of the risk factors associated with sexual activity during adolescence and potential consequences? What are some of the community-based programs that provide services to address premarital sex in adolescence? In your opinion, are these ..
Let W represents an individual’s annual earned income and U(W) = (W/10)0.5 is this individual’s von Neumann-Morgenstern utility index (or utility function) . This individual earned income is $49,000. This individual faces the prospect of a 20% chance..
She can charge different prices in the two markets. Illustrate what is the profit-maximizing combination of quantities for this monopolist.
Because physicians have admission rights to a hospital and are not considered “employees,” does that create an economic strain on the hospital’s operation? Discuss. Explain how this type of arrangement (physicians not being hospital employees) would ..
Elucidate the difference in approaches and describe the impact these differences have on excess quantity of labor supplied.
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