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Much to his dismay, Adam's trash gets picked up every Sunday morning at 7 AM. The trash truck makes a lot of noise and wakes Adam up, such that Adam experiences (monetized) utility losses of $20 from not being able to sleep in until his desired wake-up time of 11 AM. However, the trash company doesn't pick up the trash at 7 AM to be spiteful. Instead, it has designed its routes to minimize costs, and it would cost the company $10 more in gas and employee wages to stop by Adam's house at 11 AM rather than 7AM. How does the Coase Theorem apply to this situation, and what does it suggest will be the outcome?
If the Labor force grew by 1.5% per year, what rate of increase in RGDP would be sustainable without increasing inflation pressure?
Drugs, Inc. recently received approval from the Food and Drug Administration for its new supplemental drug application for a 300-milligram tablet of an antiplatelet treatment. The company invested $170 thousand in the research and development fund fo..
Perform a business strategic plan on the company "Alexion Pharmaceuticals". Attached are the BCG matrix, CPM, and competitive analysis.
In the early 1880’s cigarette-rolling machinery became available. Prior to this all rolling was done by hand. The machines dramatically cut the cost of rolling cigarettes. But they were not fully automatic—they needed the permanent presence of an ope..
A consumer splits their income equally between two goods. If the price of one good increases by 10% and their income increases by 5%, show that the consumer’s optimal consumption bundle will change despite them being able to afford their original bun..
Suppose as a manager of a profitable department store you are confronted with a pricing problem. You have two types of customers: a high-end type that willing to pay a price of $ 25 for a pair of Levis Jeans and a low-end type customer that are willi..
Why do Fed policies aim to keep the level of interest rates low in recent years? How have those rates shaped employment, income, and prices? Could these low U.S. interest rates cause inflation?
Should a nation's income be distributed to its members according to their contributions to the production of total income or according to the members' needs?
Draw a correctly labeled aggregate demand and aggregate supply graph illustrating an economy in long-run macroeconomic equilibrium.
Would a dynamic approach to taxation be more likely to lead to economic growth than the static approach in a country with a falling tax base? What about in a country with a growing tax base? If free riders cannot be excluded from consumption of a goo..
During the past year, gasoline prices have been very volatile. One reason given for at least some of the volatility is the threat of war between Israel and Iran. More recently, there has been a report of serious fire damage to Venezuela's largest ref..
Imagine that a $10,000 ten-year bond was issued at an interest rate of 6%. You are thinking about buying this bond one year before the end of the ten years, but interest rates are now 9%. Calculate what you would actually be willing to pay for this b..
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