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Question 1. Why does a monopolistically competitive firm reach equilibrium with 'excess capacity' in the long run ? Draw a precise that shows Chamberlin's 'Excess Capacity' theorem in long-run monopolistic competition. What factors influence how price-elastic demand curves can be in this model ?
Discuss the following statement: Whenever the output is below potential and the government has a fixed exchange rate policy, it can use monetary policy to stimulate the economy and bring it back to full potential.
Woodonia, the world's leading exporter of bespoke wooden furniture, produces the furniture at a per-unit cost of Q = P + 60 and the market demand is Q = 120 - P. Find and draw the domestic equilibrium. Find and draw the socially optimal equilibrium.
Irene’s Dairy is deciding whether or not to enter the market for ice cream, currently monopolized by Mattie’s Ice-cream. If it enters the market, Mattie’s can either accommodate him and share his 10million in profits equally with Irene or fight him a..
The US imposes a 25% tariff on Chinese manufactured goods. Many of the products sold by Walmart are Chinese made. What effect will the tariff have on:
Your brand, Bruinbucks!, is considered a higher quality brand without any close substitutes in the high-end category. Even though your product already has a higher than average price in the coffee sector it makes up a small percentage of your patron’..
Explain what was going on in this historical situation that created a problem to which the Federal Reserve was responding.Give specific details from this moment
As a manager within a community service organisation you regularly undertake policy and procedures review. While undertaking the review you noticed that the eth
Explain why simple cost-benefit analysis involving public goods such these are so difficult to undertake.
Allysha just borrowed 46,300 dollars. She plans to repay this loan by making a special payment of 5,800 dollars in 5 years and by making regular annual payments of 7,900 dollars per year until the loan is paid off. If the interest rate on the loan is..
This week, we are going to talk about bubbles, specifically, are we in one now? This in't really about growth - its more about the business cycle, but I found it particularly interesting. While much of the podcast focuses on San Francisco, there are ..
Which of the following is a justification for taxes ? Households act as suppliers when they provide :
Summarizes the step-by-step decision-making process the rational consumer will pursue to reach the utility-maximizing combination of goods and services attainab
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