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1. What barriers to entry exist for the Monopolistic competition business model?
2. Describe the difference between Monopolistic Competition and Monopoly market structures.
3. Define whether the monopolistically competitive market structure is a price taker or a price maker.
Show (and explain) the short- and long-run effects of a decrease in the money supply, on a graph of AS and AD, starting at the natural rate of output. Is money neutral?
Three friends (Julie, Kristin, and Larissa) independently go shopping for dresses for their high-school prom. Upon reaching the store, each girl sees only three dresses worth considering: one black, one lavender, and one yellow. Provide the game tabl..
The strategy of tit-for-tat is
Suppose that you are the manager of a newly formed retirement fund. You are to set up a series of semiannual payments to accumulate a sum of $1,000,000 in ten years. You assume that the appropriate interest rate for the period is 6 percent annual, co..
An student must decide to pay for auto insurance on a monthly or an annual basis. if paid annually, the cost is $1650. if paid monthly, the cost is $150 at the start of each month. what is the rate of return for buying the insurance on an annual basi..
Propose how it can conclude the efficient levels of information in an organization to justify taking risk over uncertainty.
Assume an industry is a duopoly. Elucidate the best response functions for A and B.
One requirement of this course is for you to write a briefing paper on the macro economy of a country of your choice, other than the United States. You do not need to pick a particular “type” of country: every country has a macroeconomic history and ..
Patrick chooses to use his time ‘free-time’: (a) working out or (b) reading. Patrick currently has 20 hours a week to allocate to these two activities. It takes Patrick 1.5 hour to work out and .5 hours to read. Patrick enjoys both activities, Draw P..
For each of the following items, identify whether it is included or excluded in calculating this year's GDP. In each instance, briefly explain why. (Note: since you are not responsible in this course for "Measures of Income" section in Chapter 5, non..
The scholarship is to provide $5,000 the first year increasing by $500 each year thereafter to a maximum of $10,000 per year. On the assumption that the scholarship will start at the end of the first year and continue forever, what endowment must ..
In the U.S, the capital share of GDP is about 50 percent, the average growth in output is about 3 percent per year, the depreciation rate is about 4 percent per year, and the capital-output ratio is about 2.5. What must the saving rate be in the init..
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