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Problem:
When considering whether to pursue antitrust action against firms, government officials usually consider the effects on consumers. Typically this means the firm is using its market power to raise prices. In doing so, regulators may overlook other costs of market power (such as labor market practices, reduction of consumer choice, reduced business investment, etc.).
Problem: Assume that we have a production process that exhibits increasing and then decreasing marginal productivity.
Why do recessions occur every 5-10 years?
Compared with the supply-induced demand (SID) model, the McGuire's quality-setting model about physician behavior is less likely.
A monopolist of a new computer software is facing demand: P = 100 -2 Q (where P is the unit price for this software and Q is its quantity) and MC = 20. What is the consumer surplus in this market
What effect is the new diet likely to have on the number of apple orchards within 100 miles of New York City?
Suppose Mabel has a utility function U = I1/2. What is Mabel’s general attitude toward risk? How do you know? Explain.
Draw demand, marginal revenue and marginal cost curves. Calculate and show how much this firm will sell and what they will charge. Calculate producer surplus with monopoly and the consumer surplus with monopoly. How much would be produced if this wa..
Scarmack's Paint Company has annual sales of $500,000 per year. If there is a profit of $1000 per day, 6 days per week operation.
Is it possible for marginal utility to be negative while total utility is positive? If yes, under what circumstances is it possible?
What is the difference between observational and experimental data?
Explain what is likely to happen to your premiums and enrollments and those of your competition. (half page or one nor more than one page.
a. Explain the decision process for a firm trying to determine the optimal quantity of a factor of production to employ. b. Explain the determination of the optimal level of pollution frrom the perspective of society.
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