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Consider a market in which there are N identical buyers who each demand qb = a - P units and thus that market demand is given by Q = N(a - P). Each firm has constant marginal cost equal to c and fix
Even small items like dvds that used to ship for 2 or 3 dollars are now shipping for nearly 7 or 8 bucks. its not about the ebay auctions that work low price into shipping, but a great deal of mains
Matthew need eggs (E) and premixed ingredients (I) to produce cake. Every cake needs exactly two eggs and one package of ingredients. When he adds three eggs and one package of ingredients, he still
A man is fired from his job because he was late for work too many times; While he is searching for another job, he would not be counted in the labor force because his employer had a legitimate reaso
What is the appropriate balance between private and public (i.e., government) activity Think of a case where the government has intervened (or it was suggested that government intervene) in a previ
In 2009, the US Postal Service increased first-class postage rates from 42 cents to 44 cents. The service had been losing money. One of the reasons is increased competition from companies such as Un
Suppose there are two types of investment in the economy: business investment and investment in housing. Suppose that the government institutes a certain subsidy paid to people who build new houses.
The soft drink industry is a duopoly with differentiated products. Two firms, Coca-cola and Pepsi, compete through Cournot quantity-setting competition. Denote the quantity that Coca-cola and Pepsi
There are economies of scale in ranching, especially with regard to fencing land. Suppose that barbed-wire fencing costs $10,000 per mile to set up. How much would it cost to fence a single property
Kindle tablet vs Ipad 2. There is rumor on the market that Amazon will release a new tablet device called Amazon Kindle, which will become a competitor of Ipad 2 from Apple. Let us consider a sequen
What is a government budget deficit How does a federal budget deficit affect the economy How does it affect the level of investment and interest rates How does it affect the individual consumer
Compare the automotive manufacturing industry of today to the automotive manufacturing industry of the 1950s. Applying the enconomics of price and output, what is the difference between the industry
Suppose, instead of a constant velocity money demand function, the velocity of money in this economy was growing steadily because of financial innovation. How would that affect the inflation rate Ex
Three friends (Julie, Kristin, and Larissa) independently go shopping for dresses for their high-school prom. Upon reaching the store, each girl sees only three dresses worth considering: one black,
Susie is at the grocery store buying milk. She has a choice between milk from Dairy A or milk from Dairy B. She doesn't actually care at all which dairy her milk comes from. (a) Draw a possible indi
As part of the marketing campaign, EML produced a video tape sales presentation to send to both owners of current EMLfour-wheel-drive vehicles as well as to owners off our-wheel-drive sports utility
Compute the monopolist's optimal price and quantity under the assumption that the monopolist is a quantity setter, i.e. the monopolist chooses the quantity that maximizes its profits. We refer to th
Choose a macroeconomic issue of current interest for which you can find two editorial or op-ed columns from national or international newspapers or magazines that take differing positions on the iss
Using the numbers given in the table below, calculate the Taylor Rule interest rate for 2005. What would the Taylor Rule suggest about actual U.S. monetary policy that year
For many firms, production takes place in two or more different plants whose operating costs can differ. In this question you will be asked to set up a multiple plant monopolist optimization model a
Identify two government programs, at a national level, that you would definitely change. Explain why and how you would change them. What are the marginal benefits and marginal costs of each changed
Identify the flaw in this analysis: "If more Americans go on a low-carb diet, the demand for bread will fall. The decrease in the demand for bread will cause the price of bread to fall.
Sometimes market activities (production, buying, and selling) have unintended positive or negative effects outside the market's scope. These are called externalities. As a policy maker concerned wit
Because bagels and cream cheese are often eaten together, they are complements. We observe that both the equilibrium price of cream cheese and the equilibrium quantity of bagels have risen.
Suppose that prisons historically have required prisoners to perform, without pay, various cleaning and food preparation jobs within the prison. Now, suppose that prisoners are offered paid work in