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Question: Suppose that the government sets a price floor for milk that is above the competitive equilibrium price and that the government does not purchase any surplus milk.
a. Draw a graph showing this situation. Be sure your graph shows the competitive equilibrium price, the price floor, the quantity that would be sold in competitive equilibrium, and the quantity that would be sold with the price floor.
b. Compare the economic surplus in this market when there is a price floor and when there is not.
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the quality lce cream company has recently introduced a new flavor sour grape lce cream. they have not been able to
Which industry is more highly concentrated: one with a Herfindahl index of 900 or one with a four-firm concentration ratio of 78 percent?Assume that each of the remaining firms controls 1% of the market. How would you describe its market structure?
A machine used to fill cereal boxes dispenses, on the average, μ ounces per box. The manufacturer wants the actual ounces dispensed Y to be within 1 ounce of μ at least 75% of the time. What is the largest value of σ, the standard deviation of Y ,..
1. Suppose the United States economy is represented by the following equations: Z = C + I + G C = 500 + .5YD T = 600 I = 300YD = Y - T G = 2000
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Aggregate Demand and Supply Models located on the student website and select one option to complete the assignment.
Economics 5321 Fall 2016 Problem Set. Sometimes goods are rationed, so people cannot buy as much as they want at the announced price. What is the MRS at the new rationed equilibrium? Supposed that a black market opens up in good 1. How much would the..
Why would a chain such as Marriott tend to own its hotels in resort areas, such as national parks, where there is little repeat business, and franchise hotels in down-town areas, where there is a lot of repeat business.
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