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Suppose that a computer software company controls the operating system market. Although the government knows that the price is higher than it would be in the presence of competition, it believes that such profits are crucial to incentivizing innovation in the high-tech industry, a policy goal of the government.
Which of the following policy options might most effectively enable the government to achieve its objectives in this situation?
a) Do nothing at all.
b) Regulate the pricing behavior.
c) Turn the company into a public enterprise.
d) Use the law to increase competition.
Using the circular flow (inner-tube) model for national income, what would be the effect of an increase in taxes, taken alone (that is, all other factors remaining unchanged)?
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suppose there are two diners. What will they order (at a Nash equilibrium)? b)suppose there are four diners. What will they order (at a Nash equilibrium)?
q. in 1999 mercedes- benz usa assumes a new pricing policy which it called nfp negotiation- free process that sought to
Temple Corp. is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, would be depreciated by the straight-line method over its 3-year life, and would have a zero salvage value. No new working c..
Using an appropriate diagram, impact of the monopolist on the society's welfare
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The water is identical in the two sizes and John gets no utility from the containers themselves, only from the water.
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suppose demand and supply are given by qd 60 - p and qs 1.0p - 20.a. what are the equilibrium quantity and price in
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