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In a price leadership oligopoly model,
a) a cartel of leading firms determines price and industry output.
b) the industry in consortium with the government determines price and output.
c) one firm is the price leader and all other firms follow.
d) the firms abandon a profit-maximizing goal.
e) firms do not operate where MR = MC.
Ann Page Corporation has fixed expenses of $30,000 per year. Variable expenses per unit are $17. Sales price per unit is $30.
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A study finds that leaf blowers make too much noise, so the government imposes a $10 tax on the sale of every unit to correct for the social cost of the noise pollution. The tax completely internalizes the externality. What is the private market pric..
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Emily Dorsey's current salary is $85,000 per year, and she is planning to retire 19 years from now. She anticipates that her annual salary will increase by $1,000 each year ($85,000 the first year, to $86,000 the second year, $87,000 the third year, ..
Assume the cat food industry is perfectly competitve and is in long run equilibrium. suppose people start to take more cats than dogs as pets, what is the impact to the cat food industry and the individual firm in the short run and long run specifica..
Assume that in a private closed economy consumption is $240 billion and investment is $50 billion, both at the $280 billion level of domestic output.
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