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Since the nation was founded, governments in the United States have invested in projects large and small having as much or more value to the private sector as the public (e.g., Erie Canal: state government; Transcontinental Railroad: federal government). Why has government undertaken such projects rather than leaving them for private development.
Using the characteristics of the monopoly structure to help you, discuss the arguments for and against monopolies. Explain the moral hazard problem and the adverse selection problem. Describe the difference between them, and discuss instances where t..
q.marys fence post factory faces a perfectly elastic demand curve for fence posts at a price of 39 per post. let q
Two partners own together a small landscaping business in North Carolina, called Summer Lawn Care. They have been specializing in summer grass seeding, installation, and maintenance. Recently, the partners acquired special technology and know-how for..
Suppose that the average household in a state consumes 500 gallons of gasoline a year. A 10 cent tax per gallon of gasoline is introduced, and couples are given a $50 annual tax rebate per household. Will the household be better or worse off after th..
The Law of Large Numbers explains why it is unlikely that the actuarially fair premium for an insurance policy will be the same for a small start up firm as it will be for a large employer such as a university. Depending on assistance from family and..
Suppose that a firm has "pricing power" and can segregate its market into two distinct groups based on differences in elasticities of demand.
Brand X contains 20, 2 and 1 units of the minerals, while Brand Y contains 4, 1, 2 units of the minerals respectively. Brand X costs $18 per kg while Brand Y costs 6 per kg.
On the issue of whether or not a little inflation helps reduce unemployment:
Explain why do you suppose that employees pay for general training and the employer pay for specific training with respect to the basic competitive model.
Suppose there is a linear downward-sloping demand curve and a linear upward-sloping supply curve for a good. The price of a substitute good increases and the price of an input to production also increases. Graph the original demand and supply curves,..
Kelson Electronics, a manufacturer of VCRs, estimates the following relation between its marginal cost of production and monthly output: MC = $150 + 0.005Q. What does this function imply about the effect of the law of diminishing returns on Kelson's ..
Monopoly and Antitrust Policy. What is the difference between holding a monopoly and monopolization? Which is illegal? Explain.
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