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In this discussion, identify what kinds of recent trends suggest an erosion of state governing capacity. Share one or more example. What are your thoughts on these changes? Are they for the better or the worse? Support your comments with assigned readings or other theoretical, empirical, or professional literature.
Suppose the market for cigarettes is characterized by the following information: Suppose the government imposes a sales tax of $2 per unit. Calculate the Dead-WeightLoss due to the sales tax.
Explain the underlying basis for foreign direct investment, and discuss several factors that may contribute to it. What factors have likely contributed to the current U.S. net direct investment position?
Elucidate relationship among production curves average product and marginal product also cost curves average variable cost, average total cost and marginal cost.
Suppose that inverse demand is given by p(Q) = a-bQ, where Q is total quantity supplied in the market. There are two firms in the market, each with a cost function of c(q) = cq, now assume that the first firm moves before the second firm. Explain why..
Consider a strategic setting in which two geographically distinct firms (players 1 and 2) compete by setting prices. Suppose that consumers are uniformly distributed across the interval [0,1], and each will buy either one unit or nothing. Firm 1 is l..
A standard objection to General Equilibrium models is that their long run predictions are irrelevant because in the long run we would all be dead. Evaluate this expression in the context of fiscal and monetary policies to relieve economic stress.
Should the government increase the minimum wage? What should be the guidelines for an increase? What are some of the disadvantages of an increase?
Economic laws are established in order to make successful prediction of the outcome of human action.
The consumption function is C = $400 billion + 0.6Y and the government wants to stimulate the economy. By how much will aggregate demand at current prices shift initially (before multiplier effects) with:
It is not possible to maximize profits by using a markup pricing strategy. To maximize profit, a firm should apply a uniform markup to each product it sells. Using markup pricing is more complicated than simply setting price equal to marginal cost.
SaveUmoney Tax Services (STS) is a small operation that offers tax services to individuals and small businesses. A local marketing consultant has estimated the weekly demand for STS's services as follows: Q = 1200 - 6 P + 25 A where: Q = the number o..
For the following situation, come up with a game (in normal form – the matrix representation we have been using) to describe the situation. Determine the pure strategy Nash equilibria.
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