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The wood-pallet market contains many identical firms, each with the short-run total cost function STC(Q) = 400 + 5Q + Q2 , where Q is the firm's annual output (and all of the firm's $400 fixed cost is sunk). The corresponding marginal cost function is SMC(Q) = 5 +2Q. The market demand curve for this industry is D(P) = 262.5 - P/2, where P is the market price. Each firm in the industry is currently earning zero economic profit. How many firms are in this industry, and what is the market equilibrium price?
Can (Evade, Audit) ever be a Nash equilibrium? What does this imply about the punishment structure?
Which of the following is true about the winner's curse?
What are the main limitations of unit root test as a test for stationarity?
At the profit-maximizing quantity, what is the price elasticity of demand? If the spring were owned by a government that applied the marginal principle, what price would it charge?
The first that comes to mind in my area is Entergy. They are like most power companies where they are monopolistic by nature, as you do not get to choose who you purchase power from.
Assume that an individual consumes two goods, X and Y. The total utility of each good is independent of the rate of consumption of the other good. The price of X and Y are $40 and $60 respectively. Use the following table of total u..
Research suggests that taxing pizza and soda would reduce the incidence of obesity in the U.S.A. Suppose you were required to choose between a price ceiling and a floor price to achieve the same result.
A heavily indebted government may end up in a vicious circle, where increasing debt leads to higher interest rates and lower growth, which increases debt even faster with subsequent even higher interest rates and lower growth etc.
Which policy would a supply-sider prefer, an across-the-board tax reduction in income tax rates or a package of tax-relief measures that would give every household a $200 tax rebate and allow them to deduct the interest they pay on credit card pur..
List advantages and disadvantages of rationing by queue, by lottery, and by coupon. If the government permitted a black market to develop, might some of the disadvantages of these systems be reduced?
Carbon Tax/Emission Trading scheme - Compare Australia with one of these countries or group of countries like Europe, USA and China/India and discuss the similarities or differences in ETS and its affect on the economy.
Consider a switchgrass farmer whose initial break-even price is $76 = $36 explicit cost + $40 opportunity cost for land. For each of the following changes, explain the effects on the farmers production cost and break-even price. (Related to Applic..
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