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 does this affect the efficient level of precaution? Explain. My answer: The first part seems false to me, because higher costs of precaution mean less efficient precaution, right? If the accidents costs decrease with precaution then you would take more precaution. For the last part I guess I would just say that costs of precaution has a direct relationship with precau... click for more

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).

DISCUSSION QUESTION 3

Some nations have very different economies. In the absence of market-set prices, how are prices determined for household goods?

Determining whether prices of farm products have changed in past three years due to shifts in supply or demand.

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 increased, decreased, or stayed the same over the past 3 years. In which of the three cases, if any, do you think that supply has increased more rapidly than demand? In which of the three cases, if any, do you think that demand has increased more rapidly than supply? Explain your reasoning.

Use the concepts of economies and diseconomies of scale to explain the shape the firms long- run ATC curve.

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