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How does monopolistic competition differ from pure competition in its basic characteristics? How does it differ from pure monopoly? Explain fully what product differentiation may involve. Explain how the entry of firms into its industry affects the demand curve facing a monopolistic competitor and how that, in turn, affects its economic profit.
Assume good X is normal. Plot a graph to illustrate the income and substitution effects of an increase in PX, holding PY and I constant. Now suppose X is a Giffen good. Plot a graph to illustrate the income and substitution effects of an increase in ..
A local community voting to raise property taxes to increase school expenditures
Suppose an economy has the following per-worker production function: What is the consumption in the initial period? What is the change in the capital-labor ratio in the initial period?
1. 1.because bank funding markets are global and have at times broken down disrupting the provision of credit to
Pretend you are a trade economist providing advice to the government of a newly emerging African country. Present (neutrally) both the case for and against a trade policy based on import substitution. You may use specific international (real-world..
Explain how the bank credit channels (two channels) of monetary policy transmission operate. Illustrate with the scenario where the Federal Reserve Bank undertakes an open market purchase.
The price of x1 is 3$ and the price of x2 is $1 and Jack has an income of $90. A) How much of each goods will he demand? A 1$ quantity tax (t) is placed on x1 so that now x1 costs $4 to Jack while his income and the price of x2 stay the same. How muc..
q. 1. what contact does natural capital have on economic growth? will it be probable for a country through few natural
The impact of a budget deficit is: State and local governments issue ____ bonds that offer tax advantages, so they typically have _____ interest rates than bonds issued by the federal government and corporations.
The owner's of a small manufacturing concern have hired a manager to run the company with the expectation that he will buy the company after 5 years. Does this contract align the incentives of the new vice president with the profitability goals of th..
Assume the sale of human organs is legalized and a free market develops. Furthermore, assume the market is in equilibrium. Trace through the price and output effects of the following: An increase in the incomes of potential buyers of human kidneys. A..
In order to rule on a potential federal grant, a government official must confirm that the average income in a Pennsylvania county is less than $12,500. A sample of 35 individuals is taken and shows a sample mean of $10,950 and a sample standard devi..
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