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(a) Set up the basic arbitrage equation that will ultimately pin down the value of the patent. On the left side show the return from investing pi dollars in a saving account. On the right, show the return from using these funds to purchase the patent. (b) Solve this equation for the price of the idea. (c) What is the economic interpretation of this result?
Perfect competition guarantees allocative efficiency. A profit-maximizing monopolist can never be allocatively efficient.
Elucidate the economic cost of most international trade less than the economic benefit of that trade for both the companies and countries.
The table below shows the market basket quantities and prices for the base year year 1.Base year 1 Price in price Quantity base year yr 2 Product.
Illustrate what is the least-cost input-combination of labor and capital and how much output is produced with that set of resources.
What is the consumer surplus after the Pigouvian tax is imposed? Do consumers of oil like the outcome with the Pigouvian tax? What does this say about the political practicality of using Pigouvian taxes to correct negative externalities?
Illustrate what would shoppers see when they shopped in Wal-Mart and the other "big box" stores that sell so many imported items
Find out the marginal utility for each chicken piece. What is the meaning of the marginal utility of the 11th piece.
Discuss and explain the reasons why net income for a particular period does not necessarily reflect a firm's cash flow during that same period.
What is the marginal propensity to consume in Freedonia, and what is the marginal propensity to save?
What are the advantages and disadvantages of a fixed exchange rate system. What are the pros and cons of a floating exchange rate system.
Discuss should the government minimize unemployment rate? What will happen if the unemployment rate is too low?
What is the Consumer Expenditure Survey (CE) How has the Survey behaved since the year 2000 What have been the causes of these changes In your response, include a graph of the CE for this period and cite your source.
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