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Question: In both perfectly competitive and monopolistically competitive markets, when firms are making positive economic profits, other firms will enter until price equals ATC and profits are zero. Despite these similarities, in a perfectly competitive market total surplus is maximized, while in a monopolistically competitive market surplus is not maximized. Explain this difference.
Using the Internet, identify an example of when a company engaged in legal, but arguably unethical, conduct.
Draw a correctly labeled loanable funds graph that shows what happens to real interest rates.
Suppose that the market for primary care physicians (PCPs) has monopsony power. The supply of PCPs is Ls= -500+2W, which can be rewritten as W=0.5Ls +250. The marginal cost of PCPs equals MC=Ls +250 and the (inverse) demand for PCPs is : W=(1000/3)-1..
In the Classical model, the supply of money and the demand for money are equal. Let k denote the percentage of income that people desire to hold as money, which is assumed to remain constant. Calculate the nominal and real GDP in 2005
Choose a branded product (For example - Walkers' Crisps, Dyson's Vacuum Cleaner) that is widely marketed in the UK at the moment but not yet available in Japan.
equilibration is the process of moving between two equilibrium points as a result of some change in supply or demand.
Mara factored in figures for customer satisfaction, scrap reduction, reduced inventory needs, and reputation for quality. With the additional information included, the analysis produced a positive result for the investment.
Explain the factors that will affect demand, supply, and prices of that product. Analyze any comparative advantages and international trade opportunities
Jeans and alligator or animal shirts: The plain pocket jeans and the Lacoste knockoffs often cost 40% less than brand-name items, yet the knockoffs are essentially identical to the brand-name items.
The poll also showed that while 55 percent of people ged 18 to 29 had a favorable opinion of foreign trade, only 41 percent of people age 65 and over did. Why might younger people have a more favorable view of foreign trade than older people?
Brazil can produce 100 pounds of beef or 10 autos; in contrast the United States can produce 40 pounds of beef or 30 autos.
A farmer must decide whether to add fertilizer when planting corn. He estimates that the corn revenue yield will be about $75 per acre without fertilizer and about $100 per acre using fertilizer. If the cost of fertilizer is $20 per acre, what sho..
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