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A new law was enacted that prohibits the monopoly from charging different prices in separated markets. With this new single-price law the monopoly is restricted to set only one single price no matter how many separated markets in which it monopolies. The board of directors of the monopoly has two options: either combine two markets into one market by summing up two demand functions or give up one of the two markets. Imagine that you were the chief economist working for the monopoly. How would you advise the monopoly's directors to set a price for maximizing profit? Be specific about your recommended price for the directors under the new law. Evaluate whether all consumers will get better off after the singe-price regulation is enforced.
Which of the following describes the expected outcome of expansionary monetary policy in the short run?
Analyze solutions to the possible pitfalls for the strategy. For each operation (India and China), evaluate GEH's human resource strategy.
Write about the phrase "time is money" by naming some specific investments of time and the subsequent return on investment.
What information would a government needs to increase the probability that its industrial policy would promote long-term self-generated economic growth.
Suppose Fiat recently entered into an Agreement and Plan of Merger with Case for $4.3 billion. Prior to the merger, the market for four-wheel-drive tractors consisted of five firms. Based only on this information, is the Justice Department likely to..
Why are the old, but still operational, steel mills such as US Steel and Bethlehem steel structured using veritical hierarchies? Why are newer steel mini-mills such as Chaparral Steel structured more horizontally?
Given the utility function U = 4lnC1 + 3lnC2 , use calculus to derive a formula for optimal consumption in period 1 (C1*) and period 2 (C2*), each as a function of the income in each period (M1 and M2), and interest rate r. Then find a formula for th..
Skillet Industries has a debt–equity ratio of 1.5. Its WACC is 9 percent, and its cost of debt is 5.5 percent. The corporate tax rate is 35 percent. What is the company’s cost of equity capital? What is the company’s unlevered cost of equity capital?
For most young people, working full-time and going to school are substitutes: you tend to do one or the other. When it's tough to find a job, does that raise the opportunity cost of going to college or does it lower it? When it's tough to find a job,..
In the lesson presented by Sal on Oligopolies and Monopolistic Competition he creates a two dimensional grid of the market types based on number of competitors and degree of product differentiation. Make sure you view this lesson. Now apply the lesso..
Compute the percentage change in nominal GDP, real GDP also the GDP deflator.
Prove that every weighted average of three numbers x1
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