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Identify one or two market failures you observe in the world around you (you can't use general ones like rent control, drugs, minimum wage). How would you classify the failure? What policy or strategy would you recommend to address or fix the failure? What trade-offs does your proposed policy entail?
Assume that firms A and B have the same minimum efficient scale of operation and, at current production levels, both firms are incurring the same average costs of production. However, firm A's output is 5 times larger than firm B's output. How is thi..
Explain the three types of goods: search goods, experience goods and credence goods. What type of advertising would firm’s likely use for each type of good and why?
The strategy of inflation targeting, which seeks to keep inflation close to a numerical goal over a reasonable horizon, has been referred to as a policy
Using a 5 percent discount rate, what is the effective rent over the three years?
Determine the average annual inflation rate over the 5-year period.
What price should the monopolist charge?
Use the following information for a Taylor rule. The equilibrium federal funds rate is 2%, the inflation target is 2% and the output growth target
What is the value of inventory listed on the firm's balance sheet? (Do not round intermediate steps.)
a. What is the value of the stock? b. What is the present value of the growth opportunity?
More people in high-income countries than in low-income countries tend to believe that rapid rates of economic growth are not desirable. Which of the following best explains what is actually happening to real per capita GDPs of countries?
Even though it is reported that weapons of mass destruction were not found in Iraq, do you agree or disagree with the statement: The Bush administration is justified in toppling Saddam Hussein, considering the threat that he posed to world no longer ..
What is the probability that any given item printed by your start up is defective? (Assume that you do not know which machines are defective)
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