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Describe the changing barriers to entry in the automobile industry and explain how the combination of market demand and economies of scale has changed the struc
Sketch the average total cost curve and the demand curve for automobiles in 1901 and in 2012.
Why is there more variety in cell phones and ice cream than in automobiles and airplanes?
The HHI for automobiles is 2,350, for sporting goods is 161, for batteries is 2,883. Which of these markets is an example of monopolistic competition?
How do brand names help consumers? How do brand names change the behavior of producers? Why would it not be efficient to make brand names illegal?
What is this shop's average total cost of a jacket sold before it starts to advertise? What is its average total cost of a jacket with advertising?
Suppose that Tommy Hilfiger's marginal cost of a jacket is a constant $100. Can you say what happens to Tommy's markup and its economic profit? Why or why not?
Provide an example of private information that a baseball player who wants a no-trade clause possesses.
Describe the moral hazard and adverse selection problems in these two leagues. Which league best addresses these problems?
What asymmetric information problems is Zaneb likley to enounter and what arrangements are likely to help cope with those problems? Explain your answers.
Does the United States overprovide? Do other countries underprovide? What economic concepts do you need to answer? What data might be relevant?
Describe the used-car market in the United States. How many used cars get traded per year and at what average price?
What are HMOs and what information problems do they help to deal with? What are the problems that Medicare and Medicaid address and what problems do they cause?
What is the cost of health care in United States compared to that in Canada and major European countries? Do health outcomes correlate with health-care costs?
President Obama campaigned on health-care reform plan that did not include health insurance. What obstacles to efficiency does optional health insurance create?
At the end of one year, Joe was offered $500 for his business and all its equipment. Calculate Joe's annual explicit costs, implicit costs, and economic profit.
What would happen to the relative price of food and haircuts and how would you change your purchases of food and haircuts? Which tax would you prefer?
Draw a graph to illustrate the change in the budget line and the change in the best affordable point for a consumer who buys fewer lattes a week.
Draw a preference map to illustrate a holiday traveler's preferences, a budget line for gasoline and nights in roadside hotels in 2010.
Explain why Gap is reducing the size of its stores. Is Gap making a long-run decision or a short-run decision? Is Gap taking advantage of economies of scale?
At the end of the year, Sonya was offered $1,600 for her cash register. Calculate Sonya's explicit costs, implicit costs, and economic profit.
Construct Yolanda's marginal product and average product schedules. Over what range of workers does Yolanda's experience increasing marginal returns?
Joe's Diner is always packed in the evening but rarely has a customer at lunchtime. Why doesn't Joe's Diner close-temporarily shut down-at lunchtime?
Look at the list to the right. In what type of market is each of the goods and services in the list sold? Explain your answers.
explain how the increase in demand for maple syrup, other things remaining the same, affects the maple syrup market and an individual producer in the short run.