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Suppose your neighbour likes to repair motorcycles in his front yard during evenings and on weekends, and he earns $400 per week from this work. However, the sight of piles of greasy motorcycle parts and the additional noise and traffic caused by his customers reduces your value of living in this neighbourhood by $300 per week. If your neighbour has a right to operate this business, what is the efficient outcome? If you have a right to live in peace and quiet, how can you achieve the efficient outcome? If you have a right to live in peace and quiet, but have to hire a lawyer to bargain for you, what is the maximum you should spend on the lawyer to achieve the efficient outcome?
"The role members of Congress serve in acting on behalf of the interests of the home constituents and nation regardless of whether constituents would immediately approve of the members' decisions" If you were a legislator and had to decide whether to..
no government transfer payments, taxes of $210 million merits, a budget surplus of $60 billion merits, and investment of $100 billion merits. Illustrate what were its consumption and government expenditures on goods and services
Explain when a firm should bring its supply chain in-house. Explain when a firm should let its supply chain remain external.
How would you repond to this discussion question:foreign exchange rates are determined by supply and demand. Using the supply and demand curve, the intersection of the curves for a certain currency will help determine the exchange rate. The rates ..
Explain utility, total utility and marginal utility and the differences between them. Explain with examples the law of demand and the demand curve. Explain “the rational consumer, marginal utility and price. With examples explain how elasticity of de..
Toys are produced by a competitive industry. Santa Claus gives away one million free toys each year. It costs Santa nothing to produce these toys. Illustrate Santa’s effect on consumer’s surplus and the producer surplus earned by commercial toy manuf..
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Suppose Microsoft chooses to produce 80 million copies of software per year and sells copies of software to retailers at $199 per copy. Now consider problem of a retailer like Circuit City or Best Buy.
What does the interpretation of the law in this case suggest to businesspersons who sell products labeled with statements mandated by federal and state law?
Recently there has be a drive to increase the production of alternative fuels from corn. The argument used by many is energy self sufficiency. In light of the desire to reduce our use of foreign produced oil, many have suggested we should subsidize t..
The engineering team at Manuel’s Manufacturing, Inc., is planning to purchase an enterprise resource planning (ERP) system. The software and installation from Vendor A costs $380,000 initially and is expected to increase revenue $125,000 per year eve..
Greece, Portugal, Ireland and Spain are all members of the European Union. All have gotten themselves into sovereign debt trouble (the government can’t pay its debts). Greece recently received a bail-out package from the EU after months of drama. Spa..
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