Q: In an article in the Wall Street Journal, Edward Lazear of
In an article in the Wall Street Journal, Edward Lazear of Stanford University was quoted as saying, “There is some good news… . Most of the inequality reflects an increase in returns to ‘investing in...
See AnswerQ: What is cost-plus pricing? Is using cost-plus
What is cost-plus pricing? Is using cost-plus pricing consistent with a firm maximizing profit? How does the elasticity of demand affect the percentage price markup that firms use?
See AnswerQ: The Food and Drug Administration (FDA) is part of the
The Food and Drug Administration (FDA) is part of the federal government’s Department of Health and Human Services. Among its other functions, the FDA evaluates the safety and effectiveness of drugs a...
See AnswerQ: An article in the Economist discussing the struggle among airline passengers over
An article in the Economist discussing the struggle among airline passengers over reclining seats offered the following observation: “Given that airlines are unlikely to increase the [distance between...
See AnswerQ: Briefly explain whether you agree with the following statement: “The
Briefly explain whether you agree with the following statement: “The total value of the shares of Microsoft stock traded on the NASDAQ last week was $250 million, so the firm actually received more re...
See AnswerQ: According to the U.S. Energy Information Administration, the
According to the U.S. Energy Information Administration, the average price of heating oil fell to under $3.00 a gallon during the winter of 2014–2015, the lowest price in more than four years. About 6...
See AnswerQ: What is the difference between productive efficiency and allocative efficiency?
What is the difference between productive efficiency and allocative efficiency?
See AnswerQ: A news story from 2015 about the oil market stated, “
A news story from 2015 about the oil market stated, “The global glut of crude that has hit [oil] prices is starting to shrink.” a. What does the article mean by a “glut”? What does a glut imply about...
See AnswerQ: According to a New York Times article, the Venezuelan government “
According to a New York Times article, the Venezuelan government “imposes strict price controls that are intended to make a range of foods and other goods more affordable for the poor. They are often...
See AnswerQ: Eric Finklestein, an economist at Duke University, has argued that
Eric Finklestein, an economist at Duke University, has argued that the external costs from being obese are larger than the external costs from smoking because “the mortality effect for obesity is much...
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