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The South American cocaine industry consists of several "families" who obtain the raw material, refine it, and distribute it to the U.S. There are only about 3 large "families", but there are several small "families". What market structure does this most closely resemble? Explain completely and thoroughly. What predictions based on the market model can be made about the cocaine business? How do you explain the lack of wars between the families?
Unlike the case in the U.S., in many foreign nations, particularly European countries, when an investor acquires a firm: I. The investor is compelled to adhere to existing employment arrangements. II. The investor must raise workers' salaries at a se..
Think about how you can check whether marginal benefit equals marginal cost for each of your household’s activities. By what methods are your households scarce resources allocated? Identify those allocated by the market price; by command; by first-co..
You have maxed out your $10,000 credit card, which is being charged 12.8% interest compounded daily. What is the minimum monthly payment to continue to break even? How much should you pay each week to get out of debt within one year?
Which of the following was not a contributing cause of the decline in investment and thus the recessionary expenditure gap occurring during the U.S. recession of 2001.
Elucidate the process and causes by which each of the following economic events will move the economy from one long-run macroeconomic equilibrium to another. Use the diagrams below, resizing them as necessary.
Determine whether each of the following would cause a shift of the aggregate demand curve, a shift of the aggregate supply curve.
compute the average cost function for skateboards. what shape does the graph of this function have. What is the average at this level of output.
During the 2008 financial crisis and the subsequent recession, how did major U.S. banks respond to the actions of the Federal Reserve? How did those monetary policy actions affect U.S. businesses and households? How were the actions of the Federal Re..
Which of the following could keep a market from ending up in equilibrium?
Suppose the government is considering the imposition of a unit tax to be levied on beer producers. The view of companies is that this is just one more cost for them to bear.
Classify each of the following statements as positive or normative. Explain. Society faces a short-run trade-off between inflation and unemployment. a reduction in the rate of money growth will reduce the rate of inflation. The Federal Reserve should..
Do you agree or disagree with the statement which: A monopolist always charges the highest possible price.
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