Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506725
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 24, Problem 9CQ
To determine
Comparison between resource allocation and market out comes under restricted licensing system and competitive system.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Congestion road pricing has often been suggested by economists as a means of
reducing traffic during rush hour. Under congestion road pricing, high tolls are
extracted from drivers during high-traffic periods, while low or no tolls are extracted
from drivers during low-traffic periods. In what way would congestion road price
structures match demand heterogeneity?
Which of the following statements is correct?
Select one:
a.In models of network goods with positive externalities, no consumption is always an equilibrium.
b.
The equilibrium in the hotelling model when both firms have the same location is for the firms to set their prices equal to their (constant) marginal cost even if their marginal costs are different.
c.
If all firms start wiht the same techonology, under both minor and drastic innovations the inovator firm is only one firm producing after the innovation.
d.
The Schumpeter hypothesis establishes that competitive firms have higher capacity to produce R&D than monopolies.
Using the Surplus Approach, describe how tendencies for concentration emerge from the regular functioning of competition between capitalist firms.
Chapter 24 Solutions
Economics: Private and Public Choice (MindTap Course List)
Knowledge Booster
Similar questions
- The onset of the COVID-19 pandemic forced many companies to conduct business remotely rather than in office buildings. In many cases, these companies found it more cost-effective to remain working remotely after the pandemic. Fees for building rentals, electricity, and other expenses are not present when employees work from their homes. One challenge faced by this change in business practice is communication. Employees can no longer walk across the hall, or peek over their cubicle walls, to ask for clarification from their coworkers about an issue. Sunny Day Technology took advantage of this situation to develop and market new computer software to help corporations develop effective communication between virtual employees. Use the knowledge you’ve gained in this and previous Units to answer the following questions. Support your response by providing examples and details. How can More Sunny Day Technology Company market the right price for its new product? How can you comprehend…arrow_forwardThe onset of the COVID-19 pandemic forced many companies to conduct business remotely rather than in office buildings. In many cases, these companies found it more cost-effective to remain working remotely after the pandemic. Fees for building rentals, electricity, and other expenses are not present when employees work from their homes. One challenge faced by this change in business practice is communication. Employees can no longer walk across the hall, or peek over their cubicle walls, to ask for clarification from their coworker about an issue. More Sunny Day Technology took advantage of this situation to develop and market new computer software to help corporations develop effective communication between virtual employees. Use the knowledge you’ve gained in this and previous Units to answer the following questions. Support your response by providing examples and details. How can More Sunny Day Technology Company market the right price for its new product? How can you comprehend…arrow_forwardDiscuss penetration Pricing model in a market economyarrow_forward
- One of the methodological problems of comparative case study is called . Select one: a. diminishing returns b. spurious correlation c. ladder of abstraction d. selection bias e. empirical relationship Which of the following is consistent with what political scientists mean when they say the modern state exerts a monopoly on force? Select one: a. Only the state exerts violence in modern societies. b. Nobody knows about violence in pre-modern states. c. Force not authorized by the state will likely be criminalized. d. Modern states are non-violent and there was no war. e. Internal violence was as pandemic as wars between states. What are some common features of post-colonial states? One of the differences between hypothesis and theory is . Select one: a. that hypothesis contains an explanation, while theory doesn’t b. that hypothesis has a set of assumptions, while theory doesn’t c. whether they are directly testable or not d. that hypothesis is always well-grounded…arrow_forwardThis scenario pertains to microeconomics course-externalities focusing on Noise Pollution, which has negative effects on human health. As some scientific studies have shown, community members who are residing around airports have been exposed to frequent noise pollution. As a result, some people's stress levels increased leading to an increased risk of high blood pressure and heart disease. Now, assume that this has had happened in San Diego County, CA. The community members or residents sued SD Airport for producing negative externalities- noise pollution. The final decision or the court verdict was in the favor of the community members. But the judge has failed to come up with an economic model to calculate the total costs of negative externality- noise pollution. To construct the model, the Judge has employed economists to come up with the model to measure the total amount of compensation per household identifying who should get how much, and what factors determine the dollar amount…arrow_forwardDemand and supply are both specified as functions of price, ruling out other extraneous influences like obligation and government commands. How does this joint dependency enhance market efficiency, compared with relying on direct binary negotiation?arrow_forward
- network externalities: (multiple choice) reduce the cost of switching to new technologies without network externalities. can explain why more efficient technologies displace less efficient technologies. can explain why the economy fails to adopt the most efficient technologies. can explain why technological lock-in no longer occurs.arrow_forwardTwo hunters may choose, individually and simultaneously, to go deer hunting, as the deer can provide abundant and appetizing food, or to go hare hunting, also appetizing, but scarce. Deer hunting represents a challenge and requires mutual coordination. Hunting a deer without cooperation means that the deer will be safe; while hunting a deer in groups guarantees it will be caught. Hare hunting is an individual activity that does not require another hunter, and the one who decides to go hare hunting always makes it. The reward for hunting a hare is 1, while the reward for each of the hunters for catching a deer together is 3 for each one. The reward for not hunting a deer is 0. Specify the game in a normal way arising from this situation. Do the players have strictly dominated strategies? Determine the set of rationalizable strategies in this case. Find all Nash equilibriums in this case, if any. Are they efficient in Pareto sense? Justify your answer.arrow_forwardIn Problem 25, under what conditions is a pooling equilibrium possible? Problem 25 Education is a continuous variable, where is the years of schooling of a high-ability worker and is the years of schooling of a lower-ability worker. The cost per period of education for these types of workers is respectively, where The wages they receive if employers can tell them apart are And Under what conditions is a separating equilibrium possible? How much education will each type of worker get?arrow_forward
- The steps for solving a maximization problem can include A. Using the constraints to eliminate some variables B. Finding the partial derivatives with respect to controls or choices C. Solving the FOC for the optimal choice D. All of the Above The definition of competitive equilibrium is A. A fight among firms that has drawn to a tie B. Allocations and prices such that all agents behave optimally and markets clear C. An economy in which each firm monopolistically sets prices D. Where the governmental exogenously sets prices to maximize welfarearrow_forwardConsider the U.S. passenger airline industry through the lens of the Five Forces model. Assume that car and train travel between any two cities is readily available. Based on this information, threats from substitutes are ____ (high or low) . All else equal, this implies that the airline industry is _____ (less or more) attractive to enter.arrow_forwardIn experiments in which participants voluntarily contribute to the provision of a public good, we often find a reduction in contributions in successive rounds of the experiment. We can explain this as Group of answer choices Evidence of participants reaching satiation and not wanting such high levels of the public good. Evidence of participants working out the Nash equilibrium outcome of the voluntary contribution game. Evidence of participants reducing cooperation to punish free riding. Evidence of participants learning how to play the game more effectively.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning