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A firm in a perfectly competitive market invents a new method of production that lowers its marginal costs.
What happens to its output?
What happens to the price it charges?
a. The firm has an employee who threatens to tell all other firms in the industry about how to implement this new technique. Will it be possible to bribe the employee not to do this? Explain why or why not.
b. Why should this employee probably choose to tell only some of the other firms rather than all of them?
c. What factors will determine the best number of firms to sell the secret to? Assume that those who get the information keep the secret instead of selling it to still others.
What is the hypothesized elasticity of demand for one product/service that is produced by the company (or a product/company you are familiar with)?
Plot both together on a supply-demand graph. Calculate the equilibrium P and Q, and show them on your graph as well. Also calculate CS (consumer surplus) at the equilibrium.
Construct the statement of stockholders' equity for December 31, 2012. No common stock was issued during 2012. Write out all your answers completely. For example, 25 million should be entered as 25,000,000. Round your answers to the nearest share ..
Draw the demand curve for the bridge crossings. How many people would cross the bridge when there were no toll? What is the loss of consumer surplus associated with charge of toll of $4.00
Williams and Westrich stock is currently selling for $15.25 per share, and the dividend is expected to continue.
Provide an argument for or against trade. Explain your reasons. What should government do to support your argument.
When 50 employees are used, the average product of labor is 50 and the marginal product of 50th worker is 75.
Find out the utility with full insurance for the treatment also how much would the individual be willing to pay to obtain such insurance than the fair premium.
How much does the gross price increase in each market
Derive the equation for the IS curve, derive the equation for the LM curve, explain why each of the following statements is true. Discuss the impact of monetary and fiscal policy in each of these special cases.
The EU is an example of a trading bloc that coordinates laws to facilitate trade between member countries.
Suppose that an industry has six firms with market shares. % MARKET SHARES Firm ADerive the HHI. Suppose firms C and D propose a merger. Derive post-merger HHI. Might this merger be challenged under the horizontal merger guidelines?
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