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Every demand curve must eventually hit the quantity axis because with limited incomes, there is always a price so high that there is no demand for the good. Do you agree or disagree? Why?
Suppose the market for healthcare services conformed to the model of perfect competition presented in class, as represented in the figures below. If the government levied a $10 tax on providers for each service they provided, how would the market pri..
In the lesson presented by Sal on Oligopolies and Monopolistic Competition he creates a two dimensional grid of the market types based on number of competitors and degree of product differentiation. Make sure you view this lesson. Now apply the lesso..
Over which range of production, the marginal product of the variable input would be increasing in the short run.
What is a monopolist? Is the product unique or there are no close substitutes. Discuss What type(s) of decision does the monopolist make about pricing and the quantity of output to offer in the market? Can the monopolist determine the level of output..
According to the law of demand, ceteris paribus. The law of supply implies that.
Explain which advanced pricing techniques would be most appropriate for each of the following firms. A complete explanation should be at least 50 words for each section. Microsoft which offers student versions, household versions, and business versio..
What are the characteristics of a pure monopoly market structure? How does a monopoly acheive and maintain its monopoly from other firms? Why is marginal revenue less than the selling price for a monopoly? Why is monopoly considered to be the most in..
SaveUmoney Tax Services (STS) is a small operation that offers tax services to individuals and small businesses. A local marketing consultant has estimated the weekly demand for STS's services as follows: How many tax returns does STS prepare each we..
Consider a hypothetical closed economy in which households spend $0.75 of each additional dollar they earn and save the remaining $0.25.
Determine the difference in the present worth values of the following two commodity contracts at an interest rate of 8% per year. Contract 1 has a cost of $10,000 in year 1; costs will escalate at a rate of 4% per year for 10 years. Contract 2 has th..
An airline loses money on one of its routes but has decided to continue to provide service. Could this decision be economically rational in the short-run? In the long-run?
Suppose there is a technological change that allows manufacturers to make computers much more cheaply. In fact, the retail price falls by 15% ceteris paribus. if the price elasticity of demand is -0.8, how much does the quantity demanded change?
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