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Markets do not allocate resources efficiently in the presence of market failures such as market power and externalities. With relevant examples, explain why each type of market failure may cause market outcomes to be inefficient.
What would happen if the government chooses to increase the number of years that a firm can enjoy patent protection from 20 years to 25 years? Why does the government grant patents to companies that research new drugs? Discuss both the pro and con.
Mention the four assumptions for the Monopolistic competition model.
To improve crack detection in aircrafts, U.S. Air Force combined ultrasonic inspection procedures with laser heating to identify fatigue cracks. Early detection of cracks may decrease repair costs by as much as $200,000 per year.
Now suppose that for the same three voters and candidates above, that it is discovered that candidate z once put ketchup on his eggs. Voter 1, is appalled and changes his ranking to x first, y second, z third. Voter 2, has always secretly ketchupe..
What would be the role of management?
If imports of Brazilian ethanol begin to rise sharply in the future, what do you predict will happen to the size of the import tariff levied on this good?
Derive LM curve through one of the standard methods used in Macroeconomics. Be sure to label all axis and curves on your graph. Describe in writing to what your derivation brings equilibrium and how it accomplishes this.
Elucidate as accurately as you can how each of the following individuals which would be affected by unanticipated inflation of 10 percent per year.
Consider the following production function for combination of capital and labor, Q=f(L,K)=L^0.4*K^0.5. Is this function homogeneous in K and L?In the long-run, does it exhibit increasing, constant, or decreasing returns to scale?
A pure monopolist determines that at the current level of output the marginal cost of production is $2.00, average variable costs are $2.75, and average total costs are $2.95.
make the costs of compliance and non-compliance with regional trading bloc rules and regulations.
Illustrate the amount of total benefits-total costs also total net benefits at the selected quantity
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