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Regarding the Sherman Act: A. Section 1 makes collusion illegal. Is this socially desirable? Are there any conditions under which collusion can be socially desirable? Explain. B. Section 2 makes it illegal for a firm to attempt to monopolize a market. Is this socially desirable? Are there any conditions where such an attempt is socially desirable? Explain.
Explain the Multiplier Effect. Try to explain it in some detail so that someone who did not know anything about economics would be able to gain a fundamental understanding of it. Use a visual aid to help the observer understand the concept. Should be..
(a) Assume good X is normal. Plot a graph to illustrate the income and substitution effects of an increase in PX, holding PY and I constant. (b) Now suppose X is a Giffen good. Plot a graph to illustrate the income and substitution effects of an incr..
Suppose the government in a very small country charges tax on some kind of food and has collected tax revenue based on that. Under the pressure of vigorous protest, it declares to return all the tax collected to the buyers and sellers of this food ba..
Which of the following is not one of the services the Fed provides to commercial banks? If the price of one good changes while other prices are held constant,
Suppose Katie, Kendra, and Kristen each purchase a particular type of cell phone at a price of $80. Kate's willingness to pay was $100, Kendra's willingness to pay was $95, and Kristen's willingness to pay was $80. For the three individuals together,..
You have budgeted a maximum of $250 per month for a car loan. (a) If your bank offers financing terms of 60 months at a yearly 12% interest, what is the most you can pay for a car? Do not put a $ or comma in your answer. Make sure you put interest in..
The selling price of a house is $1,375,000. You have enough money for a 15% down payment with the balance authorized at 4% annual compounded monthly for 30 years. How much will the monthly payments be? How much interest will be paid over the term of ..
Suppose that people expect inflation to equal 3 percent, but in fact, prices rise by 1 percent. Describe how this unexpectedly low inflation rate would help or hurt the following: homeowner with a fixed- rate mortgage. a union worker in the second ye..
Evaluate in relation to the key export readiness requirements and identify any characteristics that may be important to the company's potential export success.
The recurrent ups and downs in the level of economic activity extending over several years are referred to as business cycles. What are the phases of this cycle and describe what occurs in each phase?
For what rate of inflation, both the options are equally attractive ? Describe two different methods of "Depreciation" an equipment / plant may undergo (with numerical example)
Let’s go back to better times for Radamel, before his injury. Remember he had a monthly allowance of $200 and an hourly wage of $50. Suppose that Radamel’s utility function is U=C^.5L. assume that the total “awake” hours are 110 per week. How many ho..
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