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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 the 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 the merger. Can you do this? How? What evidence might you bring to the hearing?
Explain a way that your family interactsin factor market and a way that it interactsin products market. Discuss how circular flow relates to current economic situations.
Explain the statement that business investment depends inversely on the rate of interest while personal saving depends directly on the rate of interest.
Essential Problems in bold: Demand with a quasi-linear utility function. Consider a consumer with the following utility function u(x1, x2) = √x1 + x2. This is an example of a Quasi-Linear utility function. Calculate the MRS for this consumer for gene..
Predict what you believe will be the most significant changes in international taxation you will likely see in the next few years. Explain your reasoning.
Suppose the store manager observes that the quantity demanded increases from 700 CD players to 1,300 CD players. Illustrate what is the price elasticity of demand for CD players.
Managed care has been the target of various kinds of state and federal regulation. Describe some of the main reasons for managed care regulation. Describe some of the basic types of managed care regulation.
How is it possible for many price elasticities to be associated with a single demand curve? Rank the following in order of increasing (from negative to positive) cross-price elasticity of demand with coffee. Explain your reasoning please: Bleach Tea ..
Unions in the United States are at an all-time low and continuing to decline. Why? What has changed in our working and legal environment that has resulted in this situation?
Elucidate the effects of monetary policies on the economy's production and employment.
If a second McDonald's franchise, Mac Junior, was to move into Obscure City. Elucidate what is the market price that would prevail at equilibrium in a Cournot oligopoly.
Gomez runs a small pottery firm. He hires one helper at $15,000 per year, pays annual rent of $6,500 for his shop, and spends $23,000 per year on materials. Calculate the accounting profit and the economic profit for Gomez’s pottery firm.
Considering the market for loanable funds, how does the severity of crowding out depend on the slope of the supply curve?
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