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The market for taxi services in a Midwestern town is monopolized by firm 1. Currently, any taxi services firm must purchase a $40 thousand "Medallion" from the city in order to offer its services. A potential entrant (firm 2) is considering entering the market. Since entry would adversely affect firm 1's profits, firm 1 is planning to call to request that the city changes the medallion fee by $F thousand. In the following extensive game, "C and NC" represent firm 1's strategies "call to change fee and don't call to change fee"; "E and NE" represent firm 2's strategies "enter and not enter". (all payoffs are in thousands of dollars and include the current medallion fee of $40 thousand). Determine the change in the medallion fee that maximizes firm 1's profits.
Compute same after the OSHA guidelines have been met. Who pays the economic burden of meeting OSHA guidelines.
What is usually the relationship between a bond’s rating and the interest rate a company pays to buyers. the rating is the same as the rate or else.
Select any four of the six summary statements and explain in detail the significance and possible causes of each item. Be sure to use the economic concepts and polices discussed in your textbook where applicable. Identify possible economic policie..
A certain machine expenses $25,000 to purchase and install. It has salvage values and operating costs as demonstrate in the table in the attached file. The salvage value of $20,000 listed at time 0 reflects the loss of installation costs at the time..
A major competitor cut their price also the industry sales declined to 8000 shoes per month, If the company wishes to restore
Consider a monopolist facing demand curve Q = 100 - P. MC=AC=$20. Find out the monopoly price, profits, and consumer surplus.
Explain how can we calculate the elasticities of demand from a demand function, and elasticities of supply from a supply function.
Identify and explain specific effects of price controls at given prices. Using the hypothetical information in the table on the market for gasoline, complete the following questions: Price of Gasoline (per gallon) Quantity Demanded
If capital’s share of income is 25% and labor’s share of income is 75%, the stocks of both capital and labor increase by 50% or there is no technology growth.at what rate will potential output grow.
Define unemployment. Should everyone who does not hold a job be considered "unemployed" To help with your answer, draw a supply and demand diagram depicting the labor market. What is measured along the demand curve
Illustrate what do you see are the economic pros and cons of the North America countries including Canada and Mexico get from adopting a common currency.
We cut down trees and sell the timber for $8000. The timber is sawn up into lumber that sells for $18,000. The lumber is used to build furniture that sells to consumers for $30,000.Which of the following unemployed workers would be an example of ..
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