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In the Coke and Pepsi example, what is the effect of a specific tax, on the equilibrium prices? (Hint: What does the tax do to the firm's marginal cost? You do not have to use math to answer this problem.)
Game Theory Suppose there are only two car companies, Ford & Chevrolet. Ford believes that Chevrolet will match any price it sets, but Chevrolet too is interested in maximizing profit. Use the price and profit data.
Now suppose that people with similar incomes are more likely to get married than people with dissimilar incomes. How would this change affect the Lorenz curve drawn in part a?
assume that a national restaurant firm called bbq builds 20 new restaurants at a cost of 1 million per restaurant. it
As an alternative, an automated manufacturing system will cost $13400 with a $0.65 manufacturing cost per unit. The annual anticipated volume is 4200 units. Determine the break-even point.
If Sandwiches To Go Inc. buys all the sandwich producers and cuts production to 100 sandwiches an hour, what is the deadweight loss that is created?e. If in part d, Sandwiches To Go Inc. rations sandwiches to two per person, is this distribution of..
Suppose the store's loading dock faces the entrance of a campus building and the discarded boxes and paper (till they are cleaned out at a particular time of the day) generates a negative externality on the students. The marginal cost due to exter..
What is social stratification? How is social class connected to social stratification? Summarize the four systems of stratification (provide examples of each). Which stratification system(s) is likely to be open and/or closed? Which systems refle..
Calculate the opportunity cost of producing olive oil and pasta in both Greece and in Italy.
Elixir Spring produces a unique and highly prized mineral water. The firm's total fixed cost is $5,000 a day, and its marginal cost is zero. Table 1 shows the demand schedule for Elixir water.
Assets Liabilities Total reserves $12 billion Transactions accounts $ 50 billion Loans $27 billion Securities $11 billion Total $50 billion Total $50 billion 22.1. If the required reserve ratio is 0.20, what are the banks' required reserves
Prepare a brief update on longer-term impacts of the 2008 global financial crisis. Have any of the later developments proved unexpected (or previously considered unlikely)? Where problems have lessened, do you think they could return?
Which of these two firms would you expect to have more significant adjustment costs? Which firm would be more likely to hold excess labor? excess capital? Explain your answers.
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