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Deregulation prompted by technological change may result in the regulated incumbent's inability to recover its capital investment. For instance, in the generation of electricity in the United States, estimates of such stranded costs (sometimes called stranded assets) range from $34 to$210 billion.20 How is permitting entry in such circumstances similar to the holdup problem?
What are the implications for the politics and possibilities of deregulation? Can you explain why incumbents should or should not be allowed to recover their stranded assets? What mechanisms would you suggest for recovery? Why?
You have just started work for a small company, FitCo, that develops private fitness clubs in small towns. FitCo buys or leases a local hotel or motel, then renovates to provide a gym, swimming pool, sauna, Jacuzzi, and a small café where patrons can..
Small firms can discover the abilities of their workers more quickly than the large ones because they can observe the workers more closely at a variety of tasks. Does it then make sense for people with high abilities to go to smal firms.
The Taxpayer Relief Act developed Roth IRA which permits you to make after tax retirement contributions of up to $2000 yearly and contributions are not tax deductible
What can we learn about the development of church policy and the role of the pope during the medieval period? What does the reign of Pope Innocent III tell us about the role of the pope during this time?
What is the significance of resource pricing? Expain how the factors determining resource demand differ from those determining product demand.
If the real wage can adjust to equilibrate labor supply and labor demand, what's the real wage. At this equilibrium what are output,employment, and the total wage of workers. congress cannot dictate ow many workers firms hire at the mandated wage.
1-sketch a situation where preferences is not convex not strictly monotonic and there is no walraisian equilibrium. 2-sketch a situation where preferences is not convex not strictly monotonic yet walraisian equilibrium exist. 3- repeat (1) and (2), b..
There are two goods, Cloth and Food, and two factors of production, labour and capital. Suppose that the production function for each good is "homothetic".
Suppose the market for hospital outpatient treatment is in equilibrium when a price ceiling is set below the equilibrium price. What do you expect to happen?
Calculate the chi-square statistic and degrees of freedom for the following set of data for 180 people undergoing a knee replacement treatment with a drug supplement
rick buys a 1966 mustang for 3000 planning to restore and sell the car. he goes on to spend 9000 restoring the car. at
george foreman was a professional boxer who made a comeback by endorsing grills. foreman does not own the company that
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