Questions from General Economics

Q: Little Kona is a small coffee company that is considering entering a

Little Kona is a small coffee company that is considering entering a market dominated by Big Brew. Each company’s profit depends on whether Little Kona enters and whether Big Brew se...

Q: This chapter considers the economics of discrimination by employers, customers,

This chapter considers the economics of discrimination by employers, customers, and governments. Now consider discrimination by workers. Suppose that some brunette workers do not like working with blo...

Q: A large share of the world supply of diamonds come from Russia

A large share of the world supply of diamonds come from Russia and South Africa. Suppose that the marginal cost of mining diamonds is constant at $1,000 per diamond and the demand for diamonds is desc...

Q: What is the prisoners’ dilemma, and what does it have to

What is the prisoners’ dilemma, and what does it have to do with oligopoly?

Q: What are the pros and cons of in-kind (rather

What are the pros and cons of in-kind (rather than cash) transfers to the poor?

Q: Explain the costs and benefits of reducing inflation to zero. Which

Explain the costs and benefits of reducing inflation to zero. Which are temporary and which are permanent?

Q: Give two examples other than oligopoly that show how the prisoners’ dilemma

Give two examples other than oligopoly that show how the prisoners’ dilemma helps to explain behavior.

Q: If the members of an oligopoly could agree on a total quantity

If the members of an oligopoly could agree on a total quantity to produce, what quantity would they choose?If the oligopolists do not act together but instead make production decisions individually, d...

Q: The New York Times (Nov. 30, 1993) reported

The New York Times (Nov. 30, 1993) reported that “the inability of OPEC to agree last week to cut production has sent the oil market into turmoil . . . [leading to] the lowest price for domestic crude...

Q: Suppose that labor is the only input used by a perfectly competitive

Suppose that labor is the only input used by a perfectly competitive firm. The firm’s production function is as follows: Days of Labor ………………………………….Units of Output0 days 0 units 1 …………………………….………………...