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Even if firms in a monopolistically competitive market collude successfully and fix price, economic profit will still be competed away if there is unrestricted entry. Explain. Will price be higher or lower under such an agreement in long-run equilibrium than would be the case if firms didn’t collude? Explain.
A consumer product company is considering introducing a new shaving system called DELTA-4 in the market. The company plans to manufacture 75 million units of DELTA-4 a year. The investment at time 0 that is required for building the manufacturing..
Some time ago an executive of a Broadcasting company argued before a congressional committee that they should make a law rating TV shows for violence content. He said that children are damaged and violence must be curbed.
Show graphically that a PTA with a low cost producer of country A's imports is welfare improving compared to a PTA with a higher-cost producer of country A's imports. (Hint: you should have two graphs, one for each case)
Producing 10,000 units of electric teapot requires $400,000 of prime costs, uses 1000 machine hours, and takes 1100 setup hours. The activity rates are $30 per machine hour and $110 per setup hour. What is the unit cost of an electric teapot?
The U.S Postal Service (USPS) is a monopoly because the federal government has blocked entry into the market for delivering first-class mail. Is the USPS also a natural monopoly How can we tell what would happen if the law preventing competition ..
Describe when and why central banks buy either their own currency or the currency of another nation in an effort to control exchange rates.
exercise 1the attributes of alecturer are name payroll number department and salary.write a function which takes a
Macrosoft, a profit maximizing software provider, has a fully enforceable patent on word processing software. They can produce software with no fixed costs and with a constant MC of $20 / software package. The market for word processing software i..
What are major reasons for government involvement in a market economy such as the software industry (e.g. externalities, increasing returns to scale (failure of perfect competition), absence of futures and insurance markets, failure to attain full..
My scenario is where I am going to open restaurants in China. One in Shanghai & one Beijing.
suppose that there is a cultural shift in america emphasizing the importance of saving money as opposed to current
Explain how much should Jet Blue charge for a Business Class ticket.
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