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Questions:
1. Assuming firms in a market face a linear downward-sloping demand curve and constant marginal and average costs, carefully DRAW AND EXPLAIN where equilibrium price would be if it were a competitive market.
2. Using the same diagram, and supposing a horizontal merger occurs between firms in the industry, DRAW AND EXPLAIN under what circumstances the merger might be allowed by the anti-trust authorities if the industry is pricing competitively prior to the merger, but raises the market price after the merger.
the machining time per piece if 0.164 h and the machine loading time is 0.038h. with an operator rate of 12.80h and a
Why do you think they then began to decrease?What can be learned from the historical experiences of Costa Rica and Guatemala about internal conflicts, and about both positive and negative foreign influences?
Calculate the total revenues for each price-quantity demanded combination (for example, if one were sold at $5, the total revenue would be $5). What happens to total revenue as price goes down in the elastic portion of the schedule
shellys preferences for consumption and leisure can be expressed as uc l c - 200 times l - 80 . this utility function
1. Income is $2.00, the price of soda is $0.25, and the price of chips is $0.50. Construct Adam's budget line. 2. What is the utility maximizing combination of soda and chips Indicate this combination on the budget line.
Janet spends 5% of her income on gasoline and her utility function is Cobb-Douglas. If her income is $1000 per week, what is her demand function for gasoline per week
Suppose you are currently earning $15 an hour. If the inflation rate over the current year is 10 percent and your firm provides a cost-of-living raise based on the rate of inflation, what would you expect to earn after your raise? If the cost-of..
Explain the rationale for the rebate policy. What problem is the policy trying to solve? (Related to Application 6 on page 632.)
Determine the possible circumstances under which the company should discontinue operations. Suggest key actions that management should take in order to confront these circumstances. Provide a rationale for your response.
how would this merger affect airline costs?
Use the data in Tables 19-8 and 19-9 to find an estimate of the U.S. budget deficit as a percentage of GDP during each of the decades represented. How much has it increased since the 1960s?
Calculate the Gini ratio for this two-person economy using the geometric formulas for the area of a triangle (= ½ × base × height) and the area of a rectangle (= base × height). The area under the line segment from point a to point b can be though..
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