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Describe the competitive environment in which Facebook operates, the distribution of market power, and the strategic behavior of the firm and its competitors. Apply your knowledge of the theory of this company's market structure. How does the company make pricing and production decisions?
Describe any non-price competitive strategies that the Facebook might be engaging in. Provide specific examples.
How do you, as a consumer, benefit from the cell phone market being monopolistically competitive rather than perfectly competitive? How you are negatively impacted? Describe what you think the cell phone market would be like, from the perspective of ..
Elucidate what is the socially efficient quantity of the public goods. How much will each worker have to pay per unit to provide the socially efficient quantity.
Consider the principal-agent problem discussed in lecture, with the constraint that s greaterthanorequalto 0. At what level of u does the optimal contract result in agent effort being set to its first-best level?
Suppose a single firm produces all of the output in a contestable market. The market inverse demand function is P = 250 -5Q, and the firm’s cost function is C(Q) = 6Q. Determine the firm’s equilibrium price and corresponding profits.
There are two gravel suppliers in the Davis area, Hibbert (H) and Davis Lumber (D). They are engaged in Cournot competition, and face the same inverse demand curve for gravel, given by P = 60 - 5Q, where P is in dollars per cubic yard (yard, for shor..
Suppose the number of firms you compete with has recently increased. You estimated that as a result of increased competition, the demand elasticity
Visit two or more social media sites and review information that people post about themselves and information friends post about them.
Would you rather live in a period of inflation (plentiful jobs but hugely inflated prices, loss of value for the dollar) or deflation.
Write a short (2-3 page, double-spaced, typed) essay identifying and describing the current state of the health care industry using the tools we have studied this semester.
Explain when it may be cost-effective to use formal specification and verification in the development of safety-critical software systems.
Suppose that today's stock price is $38.63. If the required rate on equity is 18.6% and the growth rate is 3.2%, compute the expected dividend (i.e. compute D1)
Suppose your neighbour likes to repair motorcycles in his front yard during evenings and on weekends, and he earns $400 per week from this work. If your neighbour has a right to operate this business, what is the efficient outcome? If you have a righ..
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