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Numerous times in history, the courts have issues consent decrees requiring large companies to break up into smaller competing companies for violating antitrust laws. The two best-known examples are American Telephone and Telegraph (AT&T) in the 1980s and Microsoft 20 years later. (AT&T was broken up into the "Baby Bells"; but the Microsoft breakup was successfully appealed, and the breakup never occurred.)
Many argue that breaking up a monopoly is a Pareto-efficient change. This interpretation cannot be so because breaking up a monopoly makes its owners (or shareholders) worse off. Do you agree or disagree?
Explain why sharp decline in oil prices might not necessarily have positive or negative impact.
All astute comments thus far. Some government projects also programs continue to give benefits for many yrs.
How can a compensation scheme designed to enhance worker motivation lead to this result.
Elucidate how would you improve this survey to better reflect the needs of the consumer.
Elucidate why there is a relationship between price elasticity of demand and the effects on total sales revenue.
What is the output of each firm if they collude to produce the monopoly output. What profit does each firm earn with such collusion.
Using the Internet, library and/or other resources, research and briefly elucidate methods currently being used to encourage economic growth for the typical firm in Hong Kong and for the typical firm in Singapore.
What supply curve of turkeys shifts leftward. Tthe demand curve for turkeys shifts leftward ?neither the demand curve nor the supply curve shift; instead there is a movement along both curves.
Results of drilling are 15 dry holes, 12 gas producers, 18 oil wells, and 20 wells producing both oil and gas.
What is the impact on the long run adjustment due to this condition. First, look at the impact of the market and then the single firm. What does it do to economic profits or losses, then what happens in the market.
Find the SPNE of this game. Is there an outcome of the game that both parties prefer to any SPNE? Also find a NE for which the outcome differs from any SPNE outcome.
The cost of running the government program ( assuming no storage costs). Illustrate what is the total price of the program to consumers.
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