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Antitrust laws
Cooperation among oligopolies runs counter to the public interest because it leads to underproduction and high prices. In an effort to bring resource allocation closer to the social optimum, public officials attempt to force oligopolies to compete instead of cooperating.
Consider the following scenario:
Suppose that two American investment banks negotiate a merger agreement because a financial crisis threatens to bankrupt both firms.
This merger could potentially be stopped by a lawsuit brought by which of the following American institutions?
The Defense Department
The Commerce Department
The Justice Department
The Interior Department
(Tragedy of the commons) Imagine that two fishermen operate in a lake. We denote the quantity fished by fisherman 1 as q1 and the quantity fished by fisherman 2 as q2. Each player can sell each unit of fish they get by the constant market price p (ta..
Most projects completed using traditional project management are done in a weak matrix organization. Most projects completed in an agile project management framework use a strong matrix or pure project environment. Why is this so?
A firm has $1.5 million in sales, a Lerner index of 0.57, and a marginal cost of $50, and competes against 800 other firms in its relevant market.
Do some research on the Internet to determine what fiscal policy initiatives the U.S. government used to address the economic crisis of 2008-2009. Which initiatives seem to have been most effective?
Some finance experts advise consumers not to worry about rising gasoline prices, the cost of which can easily be covered by forgoing one takeout meal a month, but to worry about how high energy prices will affect the rest of the economy. For example,..
Apple has had some success in unseating Windows, or at least reducing its market share. Select the top two strategies, in order, that you believe have contributed to this success.
Consider an intertemporal model in which representative households choose consumption, c(subscript t+1) and two types of bonds b(subscript 1,t+1) and b(subscript 2,t+1) to maximize their utility over time, prices are perfectly flexible, and all marke..
If there are 12 identical firms in this industry and the market demand curve is given by QD = 360 - 2P, what is the short-run equilibrium price?
Illustrate what was the cost of recalls per year before the software was purchased if the company did exactlyy recover its investment in 4 years from the 10% reduction.
Two amusement parks that are located on either side of a highway are considering promotional advertising campaigns to stimulate demand. If both parks advertise, then both will experience a $20 thousand increase in profits. If Park A advertises and Pa..
Demonstrate a critical understanding of the standardization vs adaptation debate in International Marketing. Make reference to positives and negatives from organisational and consumer perspectives.
Two identical firms have access to a spring. Their marginal cost of bottling water from the spring is a constant 10¢ per bottle. The market demand for bottled spring water is P = 250−20Q, where P is the price (in cents per bottle) and Q is the quanti..
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