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Why does the government grant patents to companies that research new drugs?
Suppose that, initially, the Michigan economy is in equilibrium with no unemployment. The supply of workers is ES = -1,000,000 + 200w, and the demand for workers is ED = 19,000,000 – 300w, where w = annual wages, and E = number of employed workers. T..
All firms produce a homogenous or perfectly standardized commodity. The product of each firm in a perfectly competitive market is identical to the product of every other firm. This condition ensures that buyers are indifferent as to the firm form ..
Suppose an econometrician determines that the price elasticity for a firm's product is constant with value (q) = 3 for all sales levels q. If the firm's marginal cost is $4, then what price should it set?
Property Rights Security in Russian Deprivatization. What impact will the prospect of deprivatization have on investment by managers of privatized firms? What effect will deprivatization have on foreign investment in Russia? Who gains from deprivatiz..
All of the following are disadvantages of cost-plus pricing except:
What was disposable income (DI) for 2009? What does disposable income consist of? How did DI change from 2008? What caused these changes? 4. Does GDP measure the well-being of society? Why or why not? 5. What was GDP in 2008 (sometimes called GSP) ..
Consider a mutual fund with $720 million in assets at the start of the year and with 10 million shares outstanding.
Consider a situation where a monopolist faces the foloowing inverse demand curve, p = 240 - 2q and constant marginal costs of MC = 40. Suppose that a regulator imposed a price ceiling on the monopolist of p = MC = 40. Suppose the regulator was suscep..
Suppose that the index of prices recieved by famers for 2003 was 0.97 and the base year of the index was 1990. Then
q.1. you must decide whether or not to introduce a new product. if you launch the fresh product your competitor will
Assume a downward sloping line on a graph represents the amount of money that a typical snowboarder /skiier visiting Mount Mogul ski resort on a typical day would be willing to pay for successive lift trips up the mountain if lift trips were charged ..
Political Risk: Any firm investing outside its home country faces additional risks. These risks include political risk, the risk that the political situation of the country may change in an unfavorable manner for the business. Are these reforms favor..
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