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Question: Suppose that in the production of computer software, the marginal rate of technical substitution between engineers and marketers is 5 for IBM and 3 for Microsoft. Explain why this outcome violates the condition for efficiency in production and how a voluntary exchange could make both companies better off?
Illustrate what do these numbers imply for the decision of when to open a shared facility versus two separate facilities.
A contract implied in fact the circumstances imply that paarties have reached an agreement even though they have not done so expressly?
What is "Fracking"? What are the "costs" (including social costs and externalities) of Fracking, and what are the benefits? Do you think that government regulations are needed to ensure that Fracking only happens if the benefits exceed the costs?
Discuss the cyclical behaviour of the budget deficit in South Africa and provide an explanation for this behaviour. (half a page with references)
How might a significant devaluation or depreciation contribute towards inflation?
What output strategies might US companies implement to remain profitable when competing with international companies? How do market demands, costs, pricing, and competition impact these output strategies?
(Resource Demand) How do firms and individuals determine if it's worth it to (a) invest in capital improvements, (b) hire additional workers, or (c) decide where to work?
Identify some of the major companies in this industry. You will probably have to do a Google search for this information. For example
if surgeons really have the ability to increase the demand for operations which kinds of operations will be most
What are some of the positive externalities of education? Why may higher education offer fewer positive externalities than primary or secondary education?
Draw the extensive form of the above game.- How many pure strategies are there for investor A? How many for investor B?Give an example of a pure strategy for each investor.
Would you expect the increase in marginal tax rates to have an effect on the price of the municipal bond?
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