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What factors must exist for there to be an efficient market?
Compute accounting profit. What are the opportunity costs for the manager of being in this business relative to returning to his old job. Illustrate what is the economic profit of the business.
You’re the manager for a college football team. Assume you own the stadium and the variable cost per attendant is $0. You’ve been told by your in-house economist that you should set the price of tickets at $50 to maximize profit (at current, you set ..
Explain how the economy coordinates interdependent economic actors through the market forces of supply and demand?
A health reform plan recommends introducing a tax of $20 per day on hospital stays. How this new tax will affect hospital supply curve? Draw a diagram to illustrate your answer.
An engineer estimates that the annual toll revenue from a newly proposed highway construction over 20 years will increase at a rate of 4%. The revenue for the first year is $2,000,000. What is the present value of the toll revenue if the state can ea..
Discuss the potential problem with a temporary tax decrease designed to increase aggregate demand if people know that it is temporary?
Health insurance companies are oligopolies, and one of the criticisms of oligopolies is the adverse impacts these firms have on income distribution. Discuss in relation to the policies and practices of health insurance companies.
In Kessy’s old kitchen, he could bake 10 cookies or mix 15 glasses of lemonade in a day. Now he has a bigger oven and refrigerator. a. First, draw Kessy’s initial PPF assuming constant opportunity cost between cookies and lemonade. Label it PPF1.
a) Find the value of the open economy multiplier? b) What is the equilibrium level of GDP for this economy?
Many cities have experienced a substantial decrease in the amount of garbage being collected after they changed from levying a tax on each household to pay for the pickup to charging a fee for each bag or can picked up. Would this have been the resul..
In statistics, knowing that outliers can greatly impact correlation, how should one handle this? How does one ensure that their interpretations are meaningful?
Oligopolies are known as big businesses. Select an oligopoly and discuss how globalization may have affected its resource allocation.
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