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Suppose you own a television factory and at your current level of output you have average total cost of $800 per television, average variable costs of $700 per television, and a marginal cost of $400. If the price your buyers are willing to pay is $500, should you decrease or increase production?
Moving beyond this particular episode, briefly discuss how do asymmetric information, adverse selection, and moral hazard affect the future of health care policy in the United States.
Smith and Jones are stranded on a desert island. Each has in her possession some slices of ham (H) and cheese (C). Smith prefers to consume ham and cheese in the fixed proportions of 2 slices of cheese to each slice of ham. Draw the Edgeworth Box dia..
Given the market for wheat in equilibrium, assume that the government imposes a price floor on wheat. Explain what happens to the market for wheat as a result of this action? Draw and graph to fully illustrate the situation.
Explain why a movement from a point inside a production possibilities frontier to the production possibilities frontier can be described as a free lunch and a movement along a production possibilities frontier is described as a tradeoff.
Sometimes cultural difference between countries can cause a negative impact when conducting free market businesses. Take for example Walmart wanting to expand its operation in India.
Explain why the cost structure associated with many kinds of information goods and services might imply a market supplied by a small number of large firms. (At the same time, one internet business such as grocery home deliveries have continually suff..
In the classic introduction to non-cooperative game theory, the mixed strategy for a player is taught as a distribution over strategy space for the player. The distribution essentially gives us the probabilities (say, discrete strategy set) with whic..
When the output is a service rather than a good, it sometimes is difficult to quantify this service. Furthermore, the quality of a service is often as important (if not more important) than the quantity. In the field of education, in obvious quantita..
You put money into an account. One year later you see that you have 5 percent more dollars and that your money will buy 6 percent more goods.
When an excise tax is collected from sellers of a product with relatively inelastic demand, which of the following occurs?
The general role of financial intermediaries is to:
1. Which is more "cartel-like", the English Premier League or the NCAA? 2. Describe two *economic* concepts addressed in the Moneyball discussion.
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