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Antitrust authorities at the Federal Trade Commission are reviewing your company’s recent merger with a rival firm. The FTC is concerned that the merger of two rival firms in the same market will increase market power. A hearing is scheduled for your company to present arguments that your firm has not increased its market power through this merger. Can you do this? How? What evidence might you bring to the hearing?
Mr. Smith has saved $ 1200 each year for 25 years. A year after the saving period ended, Mr. Smith withdrew $ 4500 each year for a period of 5 years. In the sixth and seventh year, he only withdrew $ 3000 pre year. In the eighth year, he decided to w..
Top four firms in Industry B have market shares of top four firms in Industry B have market shares of 15,12,8 and 4 percent, respectively. Calculate four-firm c0ncentration ratios for two industries. Which industry is more concentrated.
Calculate GDP loss if equilibrium level of GDP is $10,000, unemployment rate 8.8%, and the MPC is 0.75. How much money should the government spend to eliminate this GDP loss? Calculate the tax cut needed to eliminate this GDP loss.
Which statement BEST describes the advertising industry's position on marketing to children? marketers must limit their use of advertainment in broadcast and online channels.
The treasurer of a firm noted tha many invoices were received with the following terms of payment: "2%- days, net 30 days." Thus, if the bill is paid within 10 days of its date, he could deduct 2%. Or the full amount would be due 30 days from the inv..
Assume that Erin now has preferences such that she prefers the cash gift. Using a separate graph from part (a), graph Erin's optimal choice before and after gift.
Serenity, Mac's Firefly-class spaceship, smuggles cattle from one planet to another. On one trip Mac purchased 90 head of cattle at a price of $5,000 for every 30. At his destination, he sells them for $1,000 apiece. What is Mac's Revenue and Profit?
For this discussion question, you will apply cost principles to business problems. A sunk cost is one that has already been incurred and cannot be recovered. Economic theory supports that only prospective (or future) costs are relevant to a decision...
Solve graphically: Show an increase in real interest rates that decreases quantity supplied of savings. (m2=0)
Do the following variables have a positive, negative, or roughly zero correlation in a cross- section of countries: GDP per capita and the number of books published (hard copy + electronically) per capita?
what price will the firm charge to maximize its profits? what are total profits? Would a 50% tax on profits alter the firms output? by what amount and why?
The supply of measels vaccines is given by Q=450*P. The demand for measles vaccine is given Q=20,000-50*P. what is the market equilibriumprice and quanity? The demand curve implies that private willingness to pay is P=400-Q/50. Propose an interventio..
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