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In 2004, Congressman Dennis Kucinich proposed the Free Market Drug Act. This legislation would have removed patent protection on drugs developed with public funds and given control over pharmaceutical R&D to the National Institutes of Health (NIH). Evaluate this type of proposal in terms of the effects on price, competition, and level of innovation.
The opportunity cost of a new public highway is the:
Solve for the new equilibrium. Illustrate what happens to the price received by sellers, the price paid by buyers, and the quantity sold.
In what situation should a firm offer "price matching guarantee"? Will such "price matching guarantee" increase or reduce profits? Explain. Classical supply-and-demand analysis suggests that when the demand for a product increases, prices tend to go ..
Colleagues, assess and explain a major trade regulation or policy of the United States (please choose a regulation or policy other than one already discussed by your classmates). What purpose(s) does the regulation or policy serve?
Know that the far increase on cable car rides was 67%. Price is $5 one way. Prices were raised to help ease a $57 million deficit.
Lafave Corporation uses the absorption costing approach to cost-plus pricing described in the text to set prices for its products. Based on budgeted sales of 95,000 units next year, the unit product cost of a particular product is $46.70. The company..
We are all familiar with fluctuating prices of gasoline at the pump. Explain why does this happen.
The supply of urban land increases in response to increases in demand. Most economists think rent should be abolished. Pierre-Joseph Proudhon and Henry George took similar stands on rent. Economic rent is the payment above the minimum necessary to at..
In the short run, prices may rise faster than costs. This chapter discusses why this might happen. Suppose that labor and management agree to adjust wages continuously for any changes in the price level. How would such adjustments affect the slope of..
In the absence of regulation, firm 1 would emit 15 and firm 2 would emit 20. The firms have the following marginal control costs where q1 and q2 are the amount of emissions reduced by each firm. If instead an emission permit system was established, h..
What factors led to the mortgage default crisis? How did mortgage defaults affect banks involved in mortgage lending and mortgage investing?
Define “intra-industry trade” and indicate several reasons why such trade can take place in any given product category. Then indicate the characteristics of a country that might lead you to expect that the country would have a substantial amount of i..
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