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1. If demand is elastic, the difference between the monopolistic price and the competitive market price would be greater compared to when the elasticity is low.
2. In 2011, heavy rain and cold weather destroyed 10 percent of the world coffee products. Therefore, it is expected that people consume less coffee.
Dirt Diggers (DD) is a firm that excavates roadside ditches to lay drainpipe. Its output follows the production function: Q = 10L − 0.1L 2 , where L denotes labor hours and Q the length of the ditch in meters. The marginal product of labor is MPL = 1..
Who benefits from a tariff or quota? Who loses? What are the positives and negatives of protectionist trade policies?
What are the effects of increased global competition on U.S. firms, U.S. workers, and U.S. consumers
For retirement planning, you decided to deposit $1,000 per month and increase your deposit by $100 per month. How much will you have at the end of 10 years if the bank pays 3% annually, compounded monthly?
Balance sheet: examine the last 3 (common size) annual Balance Sheets of xiaomi on Bloomberg. What is the relation of assets to: cash and cash equivalents
A monopolist faces two separate demand curves in two separate markets: P1 = 72 - 3Ql and P2 = 90 - 2Q2. The total cost curve is TC = 6 + 6Q. Find the price elasticities at the two profit maximizing points
Find the optimal contract length when the marginal benefit of writing a contract is:
A firm's cost-reduction strategies may span multiple stages, from acquisition of production input factors to product service and maintenance. When seeking to lower cost in the short term, firms should
What is the disease model of drug use? Do you think that drug abuse should be viewed in this way? Why or why not?
As late as 1992, the United States was running budget deficits of nearly $300 billion. During the remainder of the 1990's, deficits declined and became surpluses. As the new century began, these surpluses again turned into deficits. Explain the decli..
Problem 1. A market consists of three customers, A,B and C, whose individual demand equations are as follows:
You are the manager of a firm that charges customers $16 per unit for the first unit purchased, and $12 per unit for each additional unit purchased in excess of
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