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What is incomplete contract and what policies out there that address the issue of incomplete contract
Your weekly costs to producing q units are given by the following equation: C(q)=7+10q+3.5q2 +q3. With this technology, AC is minimized at approximately q = 1.11. What is the long-run equilibrium price of in this market, given that there are no barri..
We use percent-changes in the formula for estimating the price elasticity of demand coefficient in order to:
Minnesota and Tennessee, among other states have recently began to tax the sale of health care providers such as hospitals and physicians. Analyze the incidence of this sales tax for three different scenarios. The demand for medical services is compl..
Assume that a men's dress shirt was selling at $100 in a store. After one week, the store sold only 50 shirts. Then the manager of the store declared a sale "buy one get one free". This resulted in a sale of 200 shirts in the following week. Calculat..
Suppose you read in the newspaper that all last week the Fed conducted purchases in open market, and that on Tuesday of last week it lowered the discount rate.
Explain how would a low-cost price leader enforce its leadership through implied threats to a rival. Provide at least one example of such a strategy.
Ashley works for McKennel and Associates, a large business consulting firm. ABC Company has developed, according to industry sources, a new process of building low-emission, high mileage gas engines for automobiles. XYZ, a competitor of ABC, hires As..
Distinguish between ongoing demand pull and ongoing cost push inflation. Carefully draw them. Why might it be difficult to establish the extent to which a given rate of inflation is either demand pull or cost push?
Why are the negative externalities associated with the Barclays Center, which opened in 2012 in Brooklyn, likely to be greater than the negative externalities associated with the Staples Center in Los Angeles, which opened in 1999? Carefully explain ..
Referring to the 10-year historical period 1980-1990 discuss an example of a change in autonomous spending. Research a government policy implemented during that time and discuss the multiplier effect it had on the economy.
Alternatives A and B require investments of $10310 and $13400, respectively. Their respective net annual cash inflows are $3300 and $4000. What is the rate of return for each alternative and for the incremental difference? if the interest rate is 1-%..
Suppose the supply curve is Q = √P . Suppose there is no sunk cost.What is the producer surplus if 3 units are sold at price of P = 10.Graph the supply curve, P = 10, and the area of the producer surplus.
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