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When we look at the ease to enter the different market structure, there is no doubt that 'monopoly' is the hardest. Why? -- There is only ONE firm that has established 'economies of scale' with the production of their good or service. If another competitor came close to competing with them, they would simply lower their price (even in the long term) and still remain profitable. is this why the Department of Justice attempts to eliminate monopolies from the United States?
Identify the costs of having unemployment levels that are either too high or too low.
Suppose Lyle's utility function is U= XY + X + Y, X,Y greater than or equal to 0. Determine the optimal quantities of X and Y that Lyle should purchase as well as the maximum amount of utility he will receive at the optimum
Name at least two legislations to prevent monopolization of businesses. Do you believe these legislations have been helpful? Discuss.
The rate of return on an investment in medical education
Suppose we now care about the long run decisions of a firm that has a production function of the form q = 4L^1/2 + K. Assume that, at the beginning when w0 = 1 and r = 0.5, the firm chose to produce q0 = 20 units of output. Then, the wage increased t..
Illustrate what is explict opportunicy cost of attending college. what is an implicit opportunity cost of attending college.
You plan to live 20 years in retirement, expect inflation to be 3% and investments to return 5%. How much money will you need at retirement?
Suppose you are selling t-shirts at your own t-shirt stand. What are the equilibrium price and quantity for t-shirts? If the process of making your t-shirts results in chemical waste that you dump in a nearby stream, creating $5 worth of damage to th..
Illustrate what does your organization or an organization with which you are familiar consider opportunity costs when evaluating strategic opportunities.
Is there anything that your company has done or is now doing that could legitimately be considered as "shady" by your competitors?
At minimum, a market model must include all of the following except. Which of the following statements is true about the market for loanable funds?
The Federal Reserve sets the reserve requirement, which banks must meet through deposits at the Fed and cash held at the bank.
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