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Consider the following situations related to a sports stadium in a city. Assume this is the primary venue for sports games. Decide whether the city government is likely to intervene to enforce antitrust law or not.
(a)The stadium is purchased by a soft drink company, who will only provide their products at games.
(b)A company is coming into the town wanting to build a new sports complex. The stadium management decides to fund a smear campaign against the new development, as well as threaten to pull funding from key city council members' campaign funds.
Suppose that the economy is initially at equilibrium, in which total planned real expenditures equals real GDP. Which of the following will occur if there is an increase in autonomous investment?
Describe and discuss; Use the concepts of economies and diseconomies of scale to describe a firm's long run Average Total Cost Curve.
How much would Wyandotte have to reduce the price of polyol to achieve a 15 percent increase in the quantity sold? Evaluate the impact of such a price cut on(i) total revenue, (ii)total costs, and (iii)total profits.
Describe the phenomenon of market foreclosure. Specifically, describe how a vertical merger may "substantially lessen competition or tend to create a monopoly" through virtue of market foreclosure.
Explain how the break-even quantities and operating leverages are affected by the relationships between fixed and variable costs.
Employee benefits have become more and more an important part of employee compensation. According to the text, what percentage of employee compensation is employee benefits?
Think a small open economy with a fixed exchange rate system. Assume there is a general expectation that central bank will revalue the domestic currency in the future
Which of the following statements conforms to utility theory? In which market structure model may firms earn economic profits in the long run?
In the long run, the Martha Mowers can assemble 300 mowers per week at a total cost of $18,000, 400 mowers at a total cost of $24,000, or 500 mowers at a cost of $35,000.Plot points of the long-run average cost curve for these three levels of outp..
Describe the pricing strategies in monopolistic competition, oligopoly, and monopoly market models. Explain which market structures are price makers and price takers. What is the difference in the demand curves and why.
Calculate the price elasticities of demand for A and B at P=30, 20 and 10. How does the elasticity change as you move down the demand curve?
Now suppose the government decides to subsidize the production of sugar (regardless of who it is sold to). The government wants to achieve the same increase in domestic production as in part d). What should be the amount of such production subsidy..
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