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How does imperfect information help explain why used cars cost more when sold by car dealers than by private individuals?
Describe how advertising might affect the demand curve facing a firm. How do these changes affect prices? profits?
What are the benefits of searching for market information? What are the costs? How does the existence of price dispersion affect the benefits?
What role does reputation have in maintaining incentives? What is required if firms are to have an incentive to maintain their reputations?
What are some of the problems in writing contracts that provide for all the relevant contingencies?
Why is signaling unnecessary in a world of perfect information? What does it accomplish in a world of imperfect information?
Why would lemons not be a problem for consumers in a world of perfect information?
How might a cultural or group norm or expectations about correct behavior, such as that summarized in the old saying honor among thieves?
Explain how the substitution effect of the wage increase affects John's decision. Is there an income effect on John of the wage increase?
There is a negative relationship between a woman's real wage and her family size. What evidence might help you choose between these two explanations?
How about a recipient who worked less than 30 hours? more than 30 hours? Explain how the government might reduce these negative effects?
Draw a typical worker's budget constraint. Explain why the budget constraint has a kink at 37 hours of work. Discuss the consequences of the kink in the budget.
Draw a diagram to illustrate this shift in your budget constraint between leisure and consumption. After considering the idea of income and substitution effect.
How does a technological change that makes workers more productive affect the demand for labor at a given wage and price?
What does the labor supply curve look like if income effect dominate substitution effect? What will it look like if substitution effect dominates income effect?
How will the income effect of a fall in wages affect hours worked? How will the substitution effect of a fall in wages affect hours worked?
How do people make choices about the amount of time to work, given their personal tastes and real wages in the market?
Draw a U-shaped average cost curve. On your diagram, designate at what price levels you would expect entry and at what price levels you would expect exit.
Calculate and graph the marginal cost, the average costs, and the average variable costs for the Total Cover-up House-Painting Company.
Calculate the company's total costs, and graph the revenue curve and the total cost curve. Do the curves have the shape you expect?
What is the relationship between the way accountants use the concept of profits and the way economists use that term?
What determines firms' decisions to enter a market? to exit market? Explain the role of the average variable cost curve in determining whether firms will exit.
What rule determines the profitmaximizing level of output? What is the relationship between a firm's supply curve and its marginal cost curve?
Draw the total cost curve on one graph. On another graph, draw the marginal cost, average cost, and average variable cost curves.
Draw the total and average cost curves for both methods. At what levels of output will it use the high-fixed-cost technology?