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Explain the role of cooperation that may find its way into an oligopoly. Using economic theory, when does "cooperation" go "over the line" and become "collusion?" Cite some real world examples of cooperation that have devolved to collusion.
An increase in nominal GDP accompanied by a decrease in real GDP: A. is impossible. B. implies that the price level in the economy fell. C. implies that the price level in the economy rose. D. implies that the price level in the economy remained the ..
Levi's preferences are defined over left shoes and right shoes (xL , xR). Write down a plausible utility function for his preferences. Plot the consumption bundle (3,2) and the indifference curve on which it resides. What is Levi's Marginal Rate of S..
Imagine that you are a service consultant to a local health club. How would you advise the health club to begin the process of developing an effective physical evidence strategy? Describe in a memo how the physical environment impacts both the employ..
According to purchasing-power parity, if it took 58 Indian rupees to buy a dollar today, but it took 55 to buy it a year ago, then the dollar has
It appears that Very Vegetarian financial statements follow a very strict form. Why must accounting reports be prepared according to specific procedures (GAAP)? Is it permissible for businesses to be allowed some flexibility or creativity in p..
Suppose a firm’s production function is given by Q = L1/2*K1/2. The Marginal Product of Labor and the Marginal Product of Capital are given by: MPL =(K^1/2)/(2L^1/2) , and MPK =(L^1/2)/(2K^1/2). Suppose the price of labor is w = 25, and the price of ..
Consider a demand market and assume the demand and supply functions are given by: demand: q=35-p and supply: q=2p-10. determine the equilibrium price and quantity (p*, q*) in this market. illustrate your answer graphically and compute the consumer su..
Is the concept of a right to health a sufficient basis for a duty to intervene in the case presented? Can this concept be applied in the same way in other contexts, for example, to public health programs in developed countries? What should the eligib..
Define the 3 types of price discrimination and explain why 1st degree discrimination is very difficult to practice. Provide 1 example where a form of 1st degree discrimination is practiced.
Suppose that the economy of an island H is described by the following equations: GDP (Y) = 8000, government expenditures (G) = 600, Taxes (T) = 1000, Consumption (C) = 400 + 3/4 (Y-T), and investment (I) = 800 – 200r. What can you conclude about the ..
What is the uniform annual payment for 12 years is equivalent to the above payment if the interest rate is 8%?
Suppose the government is considering a tax policy that will reduce taxes by $100. In the economy, household consume 80% of each additional dollar earned. Assume that the tax cut has no effect on GDP (Y). Calculate the change in private savings. Calc..
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