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Why are the negative externalities associated with the Barclays Center, which opened in 2012 in Brooklyn, likely to be greater than the negative externalities associated with the Staples Center in Los Angeles, which opened in 1999? Carefully explain your answer.
He starts this year with nothing in the bank and ends next year with nothing in the bank. Draw his budget constraint in E1 - E2 space.
Assume that a pharmaceutical firm knows it can develop a new drug in 12 years at an upfront cost of $300m (incurred in year 1). If the firm undertakes the drug development project, it knows it can earn an annual profit of $200m in each year (starting..
Which curve shifts, if any, and in which direction. Elucidate the effect on equilibrium price and quantity for minivans.
GDP is typically calculated by tallying all final expenditures in an economy, but it can also be calculated by adding income. Pick a product and give an example of how that product's contribution to GDP could be calculated using income.
Explain the concepts of explicit costs and implicit costs. Why do economists include implicit costs in their calculation of profits? If monopolistically competitive firms have some control over the prices they charge, why do they experience zero econ..
Jen, Eric, and Kurt are all buyers of chain saws. Jen’s demand function is DJ (p) = 520 − 13p, Eric’s demand function is DE(p) = 40 − p, and Kurt’s demand function is DK(p) = 200 − 5p. Together, these three constitute the entire demand for chain saws..
As you know, the Affordable Care Act expands coverage for low-income US citizens by giving them access to Medicaid. As you also know, not every state has taken advantage of this Medicaid expansion. What economic argument can you make for expanding Me..
An article in the Economist magazine observes: “One big reason to tie money to a commodity standard would be to limit its growth in order to protect against runaway inflation.” Source: “on Gold and Golden Ages”. Economist, September 11, 2012. Why wou..
Write equations for APL and MPL and graph them on the same set of axes. b. At what level of L is MPL at its maximum level? At what level of L is APL at its maximum level?
Write the total and marginal revenue functions.
The electricians' union is a good example of:
Compare the efficiency of monopolistic and perfectly competitive markets. Discuss the economic factors that lead to the development of monopolies. Examples of monopolies include electric utilities, railroads, airlines, cable television, and sports le..
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