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(a) What is market failure? What factors are responsible for market failure?
(b) Show that market failure always results a socially sub-optimal level of outcome.
The amounts of money ($) spent by 14 students for their breakfast this morning are:
Use the Baumol-Tobin model to find money demand under the following assumptions. Income is $5000 per month (which can be broken down into 2500 in real income and a price level of 2) paid at the beginning of each month in the form of interest-earning ..
The expenditures on tires by the Ford Motor Company are not included directly in GDP statistics while consumer expenditures on replacement tires are included. Why?
Discuss the costs and benefits of both debt and equity financing, and the circumstances in which less or more of each variety of capital would benefit.
The initial offering price was $34.40 per share, and the stock rose to $41 per share in the first few minutes of trading. Bostitch paid $905,000 in legal and other direct cost and $250,000 in indirect costs. What was the flotation cost as a perce..
Federal Express (a package company) lobbying the U.S. Department of Transportation to increase annual terminal fees at airports. Sailboat manufactures lobbying to increase the tolls on New York City’s George Washington Bridge.
What is the conventional definition of economics? Please give examples.
In a city, the marginal benefit of an urban public transport mode is given by 20-2q, where q is the number of passengers. The total cost of this transport mode
Determine also show how much these firms will sell and what they will charge.
a) The government reduces the minimum nominal wage. b) The government increases Temporary Assistance to Needy Families (TANF) payments, government transfers.
Construct a consumption matrix for an open productive economy consisting of three sectors. Use the Leontief Input-Output Model to show that the economy is produ
Retail sales taxes are used at the state and local level to finance general fund expenditures. In other words, the tax revenue collected via the sales tax is not tied directly tied to benefits received by each taxpayer. Retail sales tax fair?
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