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Illustrate the effects on a consumer of a subsidy on education using indifference curves and budget constraints. Also illustrate the effects on a consumer's purchases of education of an unrestricted cash payment to her. (Hint: Use "education" and "all other goods" as the two goods she spends her income on.)
A firm has two plants, one in the US and one in Mexico and it cannot change the size of the plants or amount of capital equipment. This wage in Mexico is $5. The wage in US is $20. Given current employment the marginal product of the last worker in M..
Some medical clinics participate in the testing of drugs that are still in the experimental stage. In such situations the Food and Drug Administration stipulates that the physician must explain to the patient the nature of the drug, its possible bene..
Which of the following terms defines a preference aggregation mechanism that satisfies the properties of dominance, transitivity, and independence of irrelevant alternatives
A snickers bar costs $1.00 each at the concession stand at Notre Dame football games. Amanda revealed how much she is willing to pay for each snickers sold at the concession stand. She value the first bar at $2.00 and her marginal benefit declines by..
Warren Buffett’s company went public in 1965. The public offering price walls $18 per share. The stock was traded at $92,400 on April 10, 2009, and the market value of the firm was $97.8 billion. What is the firm’s average annual compound growth rate..
What price does it charge. What is Lite and Kool's markup. How much profit does Lite and Kool make. Do firms in monopolistic.
Skyscraper City has a subway system, for which a one-way fare is $1.50. There is pressure on the mayor to reduce the fare by one-third, to $1.00. The mayor is dismayed, thinking that this will mean Skyscraper City is losing one-third of its revenue f..
Governments often place so-called sin taxes on goods or services such as cigarettes, alcohol, and pornography. These kinds of taxes are popular with politicians because they are usually more palatable to voters than income taxes.
"Consider the following statement: "Employers should be able to replace permanent workers during a strike." Do you agree? Explain why."
Susan quit her job as a teacher, which paid her $36,000 per year in order to start her own catering business. She spent $12,000 of her savings, which had been earning 10% interest per year, on equipment for her business. She also borrowed $12,000 fro..
Why is the unrestricted entry of new firms to all markets necessary to assure the efficient allocation of resources in the long run?
q.a monopolist operates in two markets. one market is the domestic market described by the demand function qd100-pd
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