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Principle Agent Problem [Dealing with hidden action] Assume that the employer (principle) wants its employee (agent) to work hard [You can safely assume that this maximizes th
the diagram used to illustrate of abnormal and normal profits
what is exceptional demand
Why firm charges different prices to different consumer? Every firm needs to maximize its profit. When goods are sold to different customers, each customer negotiate price of
Three People choose whether to contribute a fixed amount toward the provision of a public good. This good is provided if and only if at least two of them contribute. If it is not p
ECM101 – MICROECONOMIC POLICY ASSIGNMENT 1 General Guidelines: This assignment comprises two sections and you must answer all questions in each section. Answers must be explained
income generation in a static and dynamic setting
define law of demand
why s-block elements are powerful reducing agent?
if a monopolist makes economic profits, new firms enter the market and compete with the monopolist in the long run.
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