True, False, or Uncertain. In contract law, a no damages rule will induce a promisee to take the efficient level of reliance, but induce a promisor to taken an inefficient level of precaution. Explain.
Impossibility Efficiency (Your opinion on my answer)
I was given a ruling on a case where a judge decided liability among two parties. A band was suing a music hall for the band's advertising expenses, because the hall burned down before the concert. The fire was no one's fault. The judge ruled that the concert hall did not owe the band money. We are just worried about efficiency ...continues
There is an attached chart. BTW the problem is talking about an amusement park, just so you know what I mean when I say "park" or "rides". The probability column wasn't needed then (I asked the professor) but it may be in one of these: 1. Under a rule of strict liability, how many inspections are likely to result? Under w ...continues
Let w be the marginal cost of precaution, x be the level of precaution, p(x) be the probability of an accident, and A be the accident losses. *Assume unilateral precaution. True, False, or Uncertain. If the marginal cost of precaution do not rise with the level of precaution taken, the efficient level of precaution (X*) will ...continues
There is a problem, where I am using the marginal Hand Rule to determine liability. When an increase in precaution will reduce liability from 10% to 4%, for example, how do you compute that? If the damages were $500,000 would it be 6% of $500,000?
Precaution levels & maginal costs
Q: True, False, or Uncertain. If the marginal costs of precaution do not rise with the level of precaution taken, the efficient level of precaution (X*) will be less than if the marginal costs of precaution increase with the level of precaution taken? What if accidents costs decrease with precaution? All else held equal, how doe ...continues
Impact of war on a nation's economy.
What is the impact of war on a nation's economy? Specifically, will it stimulate the economy or slow it down. The impact both in the short run (Keynesian view) and the long run (classical economist's view).
Some nations have very different economies. In the absence of market-set prices, how are prices determined for household goods?
The U.S. Department of Agriculture, http://www.usda.gov/nass, publishes charts on the prices of farm products. Go to the USDA home page and select Charts and Maps and then Agricultural Prices. Choose three farm products of your choice and determine whether their prices (as measured by "prices received by farmers") have generally ...continues
Use the concepts of economies and diseconomies of scale to explain the shape the firms long- run ATC curve. What is the concept of minimum efficient scale? What bearing can the shape of the long run ATC curve have on the structure of an industry? (show curves/graphs in the solution) MBA level
