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Hulu is a streaming entertainment service that lets you a basic at $7.99 per month and a premium at $39.99 per month. Hulu stated ,the difference in the cost of service provision between each plan or option seems to be basically the same (it streams content to your device and automated software handles advertisements, availability of local or sports channels, etc.). How do you explain the wide variety of prices for virtually the same service, given that the cost to Hulu of providing each plan is basically the same?
Explain carefully why a bank with FDIC insured depositors may have an incentive to take more risk than they would without such insurance? How may the too-big-to-fail policy practiced by regulators affect the incentive for banks to take risk? Explain.
If Live Theaters charges one price to all patrons, what would it be. Illustrate how many customers would it serve.
What are some reasons that the Federal Reserve (Fed) would attempt to decrease the money supply?
Explain why do we consider a business-cycle expansion different from long-run economic growth. Why do we care about the size of the long run growth rate of real GDP versus the size of the growth rate of the population.
For each of the following, state which 2017 U.S. GDP category or categories (C, I, G, NX) are affected and whether 2017 U.S. GDP will rise/fall/stay the same.
Suppose a fish population experiences logistic growth with growth rate r per year and environmental carrying capacity C. The population is harvested at a rate of h per year. What are the equilibrium for this model? Are they stable or unstable? What i..
Air transport for businesspeople and tourists
Suppose you deposit $5000 in currency into your checking account at a branch of Wells Fargo, which we will assume has no excess reserves at the time you make your deposit. Also assume that the required reserves ratio is 25 percent. Use a T-account ta..
A multinational company is accused of paying bribes to the government of a host country to obtain permission to build a production factory. the public relations manager of the company defends the company's actions as being ethically sound; he states ..
The purpose of this assessment is to review a few scenarios and identify the type of unemployment applicable in each scenario. Discuss what type of unemployment qualifies each scenario. Based on your responses, discuss why the other types of unemploy..
How does an Edgeworth box work, and how do you solve for optimal allocation between two consumers? How do you derive marginal utilities for a consumer with preferences which result in perfect complement curves?
Suppose in the United States, one worker can produce 10 tons of steel per day or 20 tons of chemicals per day. In the United Kingdom, one worker can produce 5 tons of steel per day or 15 tons of chemicals per day. The United States has 30 workers and..
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