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Scott, MIT Graduate
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Experience:  MIT Graduate (Math, Programming, Science, and Music)
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1. Does increase in technical efficiency always results in ...

Customer Question

1. Does increase in technical efficiency always results in maximizing profit of the producer? Discuss with respect to agricultural goods. Provide reasons for your answer.

2. Consider a firm increases the wage rate of a worker. The workers supplies fewer hours of work at the increased wage rate. The firm then decides to set the overtime wage rate. The worker increase supply of labor hours at the overtime wage rate. Discuss the reasons for the behavior of the worker.

3. Most European countries have nationalized universities and colleges. Some countries also use the law to ban private colleges. Can higher education be classified as a natural monopoly in European countries and why? Can the professional skills and scholarly achievements that constitute a faculty be classified as large, fixed costs? Can the same reasoning be applied to large, established manufacturers such as General Motors? What about medical drugs corporations? Rationalize your answer.

4. The invention of the assembly line provided Ford Motor Company with an incredible advantage over its competitors. This method of production may have made Henry Ford a monopolist but competition never quite vanished. Based on your knowledge of market forms, which form was more suitable to describe the position of Ford Motors and why? Which market conditions make any market form preferable to monopoly? Does regulation of monopolies discourage entrepreneurship? Why?

5. Consider two firms X and Y produce identically tasting cold drinks. In order to increase the demand for its cold drink firm X increases its advertisement outlay. However the advertising doesn't increase its demand in the long run. Discuss why?

6. Consider there are three airlines in the U.S. economy: A, B, and C. There is a huge capital cost of setting airlines. Consider airline A reduce its fare of economy class. Airlines B and C reacts to it by reducing fares for all classes. What type of market form are airlines. Consider in order to end the price war among themselves the three airlines enter into agreement to fix their price and output. However the agreement doesn't last. Discuss some of the reasons for the failure of such an agreement.

7. The philosopher Robert Nozick made a strong and challenging argument for a minimal state in his book Anarchy, State, and Utopia. He said no state should provide any services beyond law enforcement. This means that all highways, elementary schools, social security, and other services outside police and homeland security should be privatized. Is it reasonable from an economist's viewpoint to minimize the role of the government in accordance with Nozick's moral argument? According to you can there be any exceptions to this argument? Which services do you think the government should provide and which services should be privatized? Give reasons to support your answer.

8. According to several studies many Americans lack health insurance. However the number of people not receiving health care is typically small. Health providers are reluctant to deny treatment to anybody in need. What will you call this group of patients who do not have insurance? Will you prefer to pay for their health care through your private insurance bills or through the tax bill? What according to you are the best means to address the health needs of these patients? What role can the government play in this scenario? Discuss and justify your answer.

9. How can the microeconomic theory motivate anti-trust laws? Discuss by providing examples

10. One of the mechanisms through which U.S. government control monopolies is antitrust laws. This is done by the government to protect competition and increase the welfare of people. Do monopolies always result in lower welfare than competition? If not then evaluate whether the condition can be used by monopolists as a defense of antitrust laws.

11. In South Africa the party opposing the Apartheid regime asked the free world to enforce trade sanctions as a means to weaken the government. Should trade sanctions be used for such reasons? If so where should we draw the line? Are the U.S. sanctions against Cuba fair? Should the U.S. enforce trade sanctions against China's violations of human rights? Do you agree with this? Why?

12. Recently the French President Jacques Chirac proposed a world tax on trade and financial investments to ease the burden of poverty worldwide. Is this a good idea? Is foreign aid a better way to help poor countries than trade? What will you support and why?

13. Many arguments have been made in favor of easing international patent laws for medical drugs. It is said that this will help poor countries manufacture affordable medical drugs. This will also help countries such as India build an entirely new export industry. Should patent laws be relaxed for either or for both these reasons? Discuss
Submitted: 8 years ago.
Category: Homework

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