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What is the rationale of consumer optimization? How we conceptualize and solve the problem of a representative consumer in Neo-classical model? Support your explanation with graphs and formula/equations where necessary
Find the dominant strategy of each firm if the two firms do not cooperate with one another. Does this dominant strategy represent a Prisoner's Dilemma? Will the firms be able to achieve the outcome (10, 10)? Explain your answer
Determine the most highly concentrated retail industries in the U.S. as of 2002 and find the same information for Manufacturing and also included the Herfindahl-Hirschman Index.
How will an increase in ethanol production impact the supply and demand for corn, soy beans, and other alternative fuel resources What impact might this have on other goods and services dependent on these resources
What level of taxes is needed to achieve an income of 2,400? (Assume government purchases remain at 400.)
Calculate the following for Brian and Kim's firm
Which market form would benefit you the producer the most and Which market form would benefit consumers the most.
Calculate the Dead-Weight- Loss due to the sales tax - Calculate the deadweight loss
If we modify our basic three sector model and instead of assuming that taxes are autonomous or fixed in amount (the Tx = Txo assumption) now assume that taxes are a positive function of income, will this modification have the effect of increasing, de..
1) Every society faces economic tradeoffs. This means a. producing more of one good means less of another good can be produced b. not everyone can have enough goods and services to survive.
Suppose that an increase in marginal tax rates on individual income affects both aggregate demand and aggregate supply. Briefly describe the effect of the tax increase on equilibrium real GDP and the equilibrium price level.
Currency crises and the demand for dollars: Suppose there is a currency crisis in the rest of the world, leading to an increase in demand for U.S. dollars.
What is the role of timing in deciding to enter or exit a market? Firms decide to enter a market based on current and historical information
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