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Economists assume that profit-maximizing firms operate in perfectly competitive markets. However, this assumption does not hold in today's global market, as there are many reasons why markets are not perfectly competitive. Refer to the principle of comparative advantage and production costs, and review the reasons why companies do not operate in a perfectly competitive market. • What output strategies might U.S. companies implement to remain profitable when competing with international companies? • How do market demand, costs, pricing, and competition impact these output strategies?
If the central bank (Federal Reserve in case of USA) does not use accommodating monetary policy, a fiscal stimulus is likely to increase interest rates, which in turn will cause planned investment to decrease. What is this sequence of events called?
American rice producers have extremely high production costs, due to some structural problems. Therefore, if not supported by the government, they will not be able to compete with foreign producers. Analyze two supportive policies intended to maintai..
The inverse demand in a Cournot dupoly is P=a-b(Q1+Q2) and costs are c1(Q1)=c1Q1,and C2(Q2)=c2Q2. The government has imposed a per unit tax of $t on each unit sold by each firm. The tax revue is ?
describe several different fixed costs and variable costs associated with operating an automobile.
q.the empirical demand function of product x is estimated asx 120 - 260.0p 0.05m - 2.50prwhere x is the predicted
What did the Federal Reserve do during the financial crisis of 2008 and 2009? How did the recent financial crisis affect the financial services industry? What are some of the major provisions of the Wall Street Reform and Consumer Protection Act?
Suppose you are given the following prices for two U.S. Treasury strips. Maturity date, Price, Yield to maturity: Nov 2014 41:25 6.83%,Nov 2015 38:27 6.87%. Assume for simplicity that the maturity dates are exactly 13 and 14 years from now (November)..
The city of Carlsbad in California is considering building a $300 million water-desalination plant. The facility would be the largest in the Western Hemisphere, producing 50 million gallons of drinking water a day -- enough to supply about 100,000 ho..
The current population of the United States is 318.9 million with 3% of the population is engaged in R&D at an efficiency rate of 1/500 per million persons per year. If R&D is the only source of total-factor productivity growth what is the growth rat..
In the case of the car wash, suppose that the owner wants to segment his market in terms of the willingness to pay of her customers. She thinks that segmenting the market between car owners who would pay more than $12 per car cash wash and those who ..
Why would the money supply increased rapidly was inflation relatively low during the recession of 2007 2009 and its immediate aftermath?
Consumer surplus at any specific quantity is measured as the_________ distance between the demand curve and the level of the market clearing _______
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