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a) Please explain the difference between the collusive and competitive oligopoly models and explain the role that the number of firms and barriers to entry play in determining how real-world oligopolistic industries behave.
b) Show graphically and explain how a monopoly results in a deadweight loss. Also point out the redistribution that takes place in society because of monopoly. (*edit: You don't have to give graph if you do not know it, though it would be nice. I mainly need the explanation and to point out the redistribution that takes place)
Illustrate what is approximately the maximum amount the rm is willing to pay to be allowed to use e more units of input x, for e small
To preserve capital in a declining stock market, a portfolio manager should:
Elucidate how much labor should the firm employ. What is the resulting output and profit.
Given two countries (A and B) and two goods (X and Y) model with identical endowments: Draw the PPF for Country A that displays increasing opportunity costs and also shows that country A that displays increasing opportunity costs and also shows that ..
A project that provides annual cash flows of $11,600 for 9 years costs $64,230 today. If the required return is 5 percent, the NPV for the project is $ and you would (Click to select) accept reject the project. At a discount rate of percent, you woul..
Which of the following is probably the best example of a sunk cost? If average total cost is equal to marginal cost. Joseph can initially produce 10 pizzas or 5 cakes. After some training from a pizza-making expert, his opportunity cost of making (a)..
The demand and supply curves in the market for college education determine the equilibrium price and quantity of education. Assume the student for college education is given by Dstu = P = 9500 – 500Q, Assuming the market for education is private, wha..
Show graphically and explain why the imposition of a minimum wage results in both winner and losers in the labor market. On your graph identify the gains to the winners and the losses to the losers.
Why is the money multiplier considered to be a potential multiplier rather than an indication of exactly how much multiplication should be expected?
Describe whether each of the following would cause a shift of the aggregate demand curve, a shift of the aggregate supply curve, neither, or both.
The interest rate on the mortgage is quite small, and Jenna figures it is a real interest rate of zero, compared to her personal real discount rate of 12% per year. There is no down payment. If the mortgage payments amount to $10,000 (2015 dollars) p..
Consider the problem of the apple farmer. In your own words, explain the farmer’s optimal solution in the free market using marginal cost analysis. How might this solution be suboptimal from society’s perspective? Explain who benefits and is harmed u..
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