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Identify each type of market failure and defend it briefly:
1. An auto shop convinces you you need a $2,000 valve job when all you need is an oil change.
2. The only two airlines flying direct between St. Louis and Atlanta make an agreement to raise prices.
3. Everyone in the neighborhood would benefit if an empty lot were transformed into a park, but no entrepeneuer will finance the development.
4. Someone who lives in an apt. buys a Wayne Newton CD and then blasts it at full volume at 3am.
Assume you are the owner of a small cafe that employs 15 people, 10 of whom are front-line, unskilled workers, and currently paid the minimum wage. The state government is considering increasing the minimum wage. As a business owner, would you su..
In a one-shot game, if you advertise and your rival advertises, you will each earn $5 million in profits. If neither of you advertise, your rival will make $4 million and you will make $2 million.
Canadian firms that buy machinery and equipment from US suppliers c.cross border shoppers from Canada who shop for goods in the US retired Canadians who live in Arizona and Florida during the winter months
Businesses often decide between using automation and labor in production. An automotive environment may have high fixed costs and low variable costs.
A company is considering purchasing a copy machine. The information is given : Investment cost $30,000 Expected life 5 year Market salvage value -$2,500 (negative means that there is a net cost to dispose of an asset) Annual receips $23,500 Annu..
The consequences of decriminalizing illegal drugs have long been debated. Some claim that legalization will lower the price of these drugs and reduce related crime. Others claim that more people will use these drugs.
Students will conduct an analysis of a recent article and provide their evaluation and outcome expectations in a written paper of 1500-2500 words that discusses:
Derive the FOC and SOC conditions of profit maximization for this firm. Show that SOC is satisfied (impose necessary conditions). Which plant will have a greater increase in output? Please explain why.
Write the equation for Total Costs and what is TC when profit is maximized - what is Total Revenue when profit is maximized?
Examining the current market situations of "Starbucks" competition can take many forms. value competition includes collusion, price leadership, loss leaders, price discrimination.
What will the economic impacts of maintaining lower CO 2 emissions in the aggregate for the Turkish economy?
Consider two metropolitan areas, one that has many small school districts and one that has only a few large school districts. In a paragraph, what are the efficiency and equity effects of introducing a voucher system likely to differ across these two..
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