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Question: Suppose that courts begin imposing higher fines on car manufacturers that build cars that occasionally malfunction and harm consumers. Car manufacturers can make expenditures that decrease the likelihood of malfunctioning. Does the change in the court's behavior change the expected marginal benefit of avoiding an accident or the marginal cost of avoiding an accident? What happens to the rate of product malfunctions? Research and provide one example of a car manufacturer that recalled vehicles. What was the impact on profit, reputation? Where they fined by the courts? Was there litigation involved? Did they settle?
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A person deposits $100 per month into a savings account for 2 years. If $75 is withdrawn in months 5, 7 and 8 (in addition to the deposits).
George has $100 in income to be spent on hamburgers (H) and milk (M). Draw George's budget line in a graph with milk measured on the horizontal axis and hamburgers on the vertical axis. Label this graph clearly and completely
What is the difference between Relative poverty And extreme poverty
The widget industry in Springfield is competitive, with numerous buyers and sellers. Consumers don't differentiate among the various brands of widgets (no product differentiation). The industry demand curve is given by: Qd = 998 - 5Pw + 4 Y - 6Pg
During the business cycle, the period between the point at which output reaches a high and the point at which it reaches a low is called
Suppose the nominal rate of interest on a bank certificate of deposit is 12 percent. What would be the effect of an inflation rate of 13 percent?
How you ensure your company will exceed competitors program? What will you use to help prevent these issues and what will you use to respond to customer issues?
While industrialised countries manufacturing tariffs have been cut significantly as a result of the past GATT rounds, agriculture remains heavily protected in many countries. Briefly discuss the welfare effects on domestic and international consumers..
Evaluate the economics of the proposal using (a) the modified B/C analysis from the State of Georgia perspective and (b) the profitability index from the Young corporate viewpoint in which disbenefi ts are not included.
What are the marginal cost and the average cost of production when the firm is producing 30 units of output - does the economy exhibit constant, increasing or decreasing returns to scale?
Provide a brief review of the theoretical and empirical literature on the economic effects of public debt (50%). Collect data on South Africa's external debt.
a monopolist faces a demand curve given byp 105 - 3q where p is the price of the good and q is the quantity demanded.
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