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A profit-maximizing price searcher will expand output as long as marginal revenue either exceeds or is equal to marginal cost, lowering its price or raising its price until the midpoint of their demand curve and highest total revenues are achieved. Why are oligopolies able to earn both short-run economic profits and long-run economic profits, while price taking firms like perfect competitors can only earn short-run economic profits? Review the characteristics of perfect competition and imperfect competition (monopolistic competition, oligopoly, and monopoly). Barriers to entry don't exist for perfect competition, but barriers to entry exist for imperfect competition. What are the implications of barriers to entry to the firm and competition? Review consumer surplus and producer surplus; what happens to consumer surplus is price is above equilibrium, or in this case above normal profits?
Write one equation, with i as the only unknown, for the cash flow. In the equation you are not to use more than two single payment compound interest factors.
Discuss the capture of the regulatory agency and your prediction as to the capture of the replacement regulatory agency and the politicians in the future.
Almost immediately after the new Federal Constitution went into effect, those supporting it split between Thomas Jefferson and Alexander Hamilton. What was Hamilton’s economic program in the 1790s and why did Jefferson oppose it? Did Hamilton get his..
Select an economic problem or theory and discuss how dummy variables could be applied. Determine the value that dummy variables would add to your analysis (think outside the box on this one – avoid obvious examples like gender, race, etc.).
find the equation that describes the IS curve
What do real interest rates account for that nominal interest rates do not? The level of real GDP is a good measure of economic prosperity, and the growth of real GDP is a good measure of __________. A higher interest rate makes more attractive. Ther..
This had instantly squeezed his margins as his costs had risen directly with the exchange rate. He could not find anyone to sell him dollars. His customers needed supplies and they needed them quickly, but how was he going to come up with the $30,000..
If we modify our basic three sector model and instead of assuming that taxes are autonomous or fixed in amount (the Tx = Txo assumption) now assume that taxes are a positive function of income, will this modification have the effect of increasing, de..
Uwe Reinhardt, an economist at Princeton University, wrote the following in a column in the New York Times: [Cost-effectiveness analysis]
You should test creating Store objects and Restaurant objects, your set methods and get methods, toString and equals methods.
Please answer the following: What have been the consequences of government interventions in managing the State of Florida
Inflation has been a reality for the general economy of the U.S. In many years. Given this assumption, calculate the number of years it will take for the purchasing power of today's dollars to equal one-fifth of their present value. Assume that infla..
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