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-How are market structures characterized?
-How are monopolistic competition able to achieve market power?
-Monopolistically competitive firms can earn positive economic profits in the short run, but in the long run:
Suppose the MWTP in periods 1 (now) and 2 (one year from now) is given by P = 8-0.4q. Marginal extraction cost = $2. r = 10%. The available supply is 20 units. Suppose 13 units are consumed in period 1 and 7 units in period 2. Calculate the present v..
Suppose that you win the state lottery. You have two options to receive your winnings. Plan 1 pays you a lump-sum amount of $300,000. Plan 2 pays you $20,000 today, $100,000 after one year, and $200,000 after two years. Assume that the current intere..
Consider a piece-rate-tournament experiment like in the Niederle and Vesterlund paper but with groups of 2: 1 man and 1 woman, both of whom maximize expected value. Calculate the expected value payoffs from piece-rate and from tournament pay for men..
Why does Vellus export through local distributors rather than set up its own sales force in country? What are the risks associated with using local distributors? How can these risks be reduced? What lessons about successful exporting can be derived f..
You are moving aluminum from the mill to to 2 different markets. Measure for the 2 mills are measured as: Qa=10,000-40Pa and Qb=8000 - 60Pb, Qa=quantity in market A, Qb=quantity in market B. P= price charged, Assume marginal cost=$75 per unit a. What..
When a purely competitive market is in equilibrium:
What effect did the tax have on LeAnn's output level. How LeAnn's did profits change.
Suppose a typical consumer's inverse demand function for bottled water at a resort area where one firm owns all the rights to a local spring is given by P = 15 - 3Q. The marginal cost for gathering and bottling the water is $3 per gallon. Find the op..
Discuss and contrast the features of the retirement plans offered by Creative Games and United Manufacturing. And then explain how you would use each of these plans in developing your own retirement program.
The economy is made up of C and I and is currently at full employment. If consumption is $5 trillion while savings is $1 trillion, what is current investment according to the Classical economists? Suppose consumption falls by $500 billion what will h..
assume an urban clusters income i is given by the function i4n-0.05n2 where n denotes the clusters population in
During the U.S. stock market collapse of 2007, Paula's financial advisor recommended that she invest in a number of pharmaceutical companies while their stock values were down considerably. He expected these companies to maintain high dividend yields..
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