Fixed and Marginal Costs, and Economies of Scale
How much does it cost to buy a case of soda from Costco? The simplest answer is that $5 seems to be the asking price. But »
Multiple Equilibria, Public Policy, and How to Get a Date
It's been a bad month. Your hair's gotten scruffy, you've stopped shaving, and you haven't even thought about »
Understanding Principal-Agent Problems
You're young and lazy and you've been hired for a summer job at the record store downtown (remember those?) The boss' »
Understanding the Coase Theorem
First, a caveat: the Coase Theorem is an interesting thought experiment and a stepping-stone to further understanding and not intended as a real description of the »
Understanding the Permanent Income Hypothesis
You're 22, young and free, and you've saved up hard until you have $1000 in the bank. Your job covers your necessities »