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1. How do market prices coordinate the economic activity of millions of individuals?
2. What is a negative externality?
3. How does an externality indicate market failure?
4. How does market power or monopoly subvert the coordinating function of market prices?
5. What is the tragedy of the commons?
Suppose that the labor market is competitive and there are a total of 1,000 black workers and 1,000 white workers (who each supply their labor in elastically). Both black and white workers are equally productive, having constant individual dollar pro..
What are the advantages of E-Commerce? Name all the specific cyber issues that have necessitated new laws? Explain what the term “spontaneous order” means? Name all of the factors that, according to Lawrence Lessig, govern both real space and cybersp..
Sole is avoiding paying a fairly high price to retain the money owed shoe manufacturers. What would have been the effective annual after-tax interest rate?
Describe the possible barriers to entry and exit for: (a) a physician wanting to establish a solo practice office in internal medicine, (b) a company offering a health club facility in the same building where employees work, and (c) a tertiary hospit..
Evaluate the success or failure of the intervention in achieving its objectives and develop conclusions. Defend the use of or discontinuation of the selected intervention.
Since its founding in 331 B.C.E., the city of Alexandria has been a center of trade for the Mediterranean countries, as well as the Middle Eastern countries. Part of this is due to geography, but it is also due to the network effect. What is the sour..
Suppose there are two types of shirts available to Carl: red shirts and black shirts Carl is always willing to exchange three black shirts for one red shirt. Draw several indifference curves to illustrate Carl's preferences. Are Carl's preferences co..
Assume that the loanable funds market for the United States is currently in equilibrium.
Compute the percentage of the firm that is financed by debt provided that the firms assets of $9 million are financed by $5 million in Equity and the rest.
If the shop's tax rate is 0.37 and its discount rate is 0.08, what is the total cash flow in year 4? (Do not round your intermediate calculations.)
Good Food Restaurant provides a monthly bonus for servers when sales volume exceeds 120% of the same month last year. The size of bonus is tied to the individual server’s sales of meals relative to the average server’s sales.
Suppose that this consumer gets 2 units of income in the first period and 4 units in the second period.
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