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Suppose that you have two people in an economy, Ms. Hundley and Mr. McKenna, who want to produce a public good S. Suppose we calculate the Lindahl equilibrium using the method in your textbook. In this case, the demand curve for Ms. Hundley is S=P^.5. The demand curve for Mr. McKenna is S=8/P. If the marginal social cost of the project is $10, what is the Lindahl equilibrium quantity of S? What are the Lindahl prices? Show all work/every step
The sons were very upset regarding their father's Will. They thought that he was not fair in distributing his assts." Based on your understanding of the Property Rights, what can the sons do to get a fair share of their father's property? Discuss the..
Describe what factors may cause probation to be successful or not. What are the roles of the corrections organization
Under imperfectly competitive firms model, what are the major sources of market power based on barriers to entry that help firms maintain market power over othe
The stock market is booming and everyone is making money with their stock portfolios. At the same time, all business taxes have been increased by 20% as the government tries to reduce their deficit. Using the required underlying graphs, illustrate th..
Discuss any problems associated with using majority voting to determine the optimal level of a public good.
Imagine that you work for the maker of a leading brand of low-calorie, frozen microwavable food that estimates the following demand equation
Consider a homogenous good market with the following market demand curve: Two firms produce output at constant marginal cost = 10. Derive the Nash equilibrium outcome in terms of prices, outputs and the profits of the two firms under the following al..
The Keynesians claim interest rates guarantee that savings will equal intended investment. The Keynesians claim that wages and prices are “downward sticky”. In the Keynesian model the velocity of money moves against GDP. Determine the socially effici..
Two countries, A and B, have identical levels of real GDP per capita. In Country A an increase in the capital stock increases the potential output by 10%. Country B also experiences a 10% increase in its potential output, but this increase is the res..
Suppose a firms benefit and cost structure is given by the following respectively B(q) = 400Q-5Q^2 C(q) = 3Q^2 what is the output level at which net benefits are maximized?
Women are sometimes stereotyped as "moms"; and many times it is assumed that working mothers would not be interested in a major new assignment that could advance their career. What are some ways to overcome these stereotypes?
Subprime lending is thought to be a contributing factor to the recent housing bubble. Which of the following is an example of subprime lending?
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