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Question: Jones and Smith have a contract that will produce $100 in benefits for each of them if they both carry out their duties under it. If Jones breaches the contract, he will create $140 in benefits for himself, and Smith will only get $40. What are the expectation damages a court should order Jones to pay? Explain. What if Jones's breach gives him benefits of $170, while Smith again gets $40? In this case, why would an economist recommend that Jones breach the agreement? Does your answer change if a court for some reason lets Jones keep all of his gains, leaving Smith with just $40? Why or why not?
Detroit Oil Refinery Expansion Approved Marathon Oil Saturday started work on a $1.9 billion expansion of its gasoline refinery in Detroit.
Calculate the magnitude of the consumer surplus and producer surplus in the pre-tax equilibrium and calculate the tax revenue in the post-tax equilibrium
If both have a 5 percent increase in their real per capita outputs by how much will the per capital output gap change $
a private-garage owner is currently charging his customers 1.75 per hour. but he is considering changing the way he
The presentation of a firm position regarding your stance or theory and an offering of a strong position using evidence - based argumentation.
Suppose the government regulates the prices of beef and chicken and sets them below their market clearing levels. Explain why shortages of these goods will develop and what factors will determine the sizes of the shortages. What will happen to the pr..
suppose that the firms initial demand curve had been p 5000 - 50q and that it shifted inward to p 4000 - 50q. assume
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Presume the government decides to increase taxes by $20 billion to increase Social Security benefits by the same amount. How will this combined tax transfer policy affect aggregate demand at current prices?
Suppose demand is given by Qd(p)=99-2p, and supply is given by Qs(p)=p. Find the free market equilibrium price and quantity. Now consider government imposes a $3 quantity tax on transaction. Find the new market equilibrium prices and quantity. Comput..
What is the equilibrium level of GDP in this economy? Are inventories increasing or decreasing when GDP is 4,000? 2,000? By how much are they changing
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