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For example, it would be much more efficient to produce 1 car model. (Henry Ford used to say "you can have a Model T in any color you like, as long as it's black!"). Basically, firms are not in business to be efficient, make quality products, or make stuff that will last... they are in business to make a profit. Is this what we want our government to do? If not, why do we want government to be more like business?
Illustrate what is the marginal income for each 10,000 increase in the quantity sold. Illustrate what recording fee would you advise Johnny to demand from the record organization.
Suppose there are two consumers, A and B. The utility functions of each consumer are given by: UA(X,Y) = X*Y UB(X,Y) = 2X + Y The initial endowments are: A: X = 4; Y = 2 B: X = 4; Y = 6. What is the marginal rate of substitution for consumer A at the..
In particular, please explain why some policies got implemented even though they may be against economic principles.
Demand and Supply of Rolls of Film - Assignment The table below shows the demand and supply schedules for rolls of film. Price Quantity demanded Quantity supplied ($ per roll) (rolls per week) (rolls per week) 2.00 3,000 1,000 3.00 2,500 1,500 4.00 2..
Suppose there are two types of workers: high-ability and low-ability. Workers know their own abilities but firms do not. A high school diploma costs a high-ability person $10,000 and costs a low-ability person $15,000. What value of $K guarantees tha..
Discount rates will vary based upon your own personal level of risk tolerance. For example, I might be willing to buy a risky stock if I think I'll earn.
Suppose Mike and Johnson produce two products- hamburgers and T-shirts. Mike produces 10 hamburgers or 3 T-shirts a day and Johnson produces 7 hamburgers or 4 T-shirts. Assuming they can devote time in making either hamburgers or T-shirts. Draw the p..
Specify whether you agree or disagree with the statement as it appears on the topic survey.
Your employer has anticipated needing $60,000 in 2.5 years to finance the purchase of new machine. If they aniticipate making a single lump sum investment today into a savings account that will return 12% interest compounded continuously, how much mo..
1. Compare and contrast the CSR efforts of three of Timberland's competitors. How do they compare to and/or differ from Timberland's efforts?
Compute the amount of the natural employment deficit in terms of both billions of dollars and as a percent of natural real GDP.
Explain why do we consider a business-cycle expansion different from long-run economic growth. Why do we care about the size of the long run growth rate of real GDP versus the size of the growth rate of the population.
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