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Monopolistically competitive firms are inefficient, so why do we allow so many to exist? Monopolistically competitive firms are numerous and prominent. So, what do we gain from them that compensates us for their inefficiency? explain please.
q1. when the federal government decreases the individual and corporate income tax rates?q2. between sweezy oligopoly
From chapter 8 (chapter 21 in the combined volume), we know that the primary cause of inflation is expansion of the money supply. In this chapter, we learn an additional side effect of monetary expansion. What is this effect? A. Current account defic..
Suppose you manage a perfectly competitive firm. Your short-run total cost is given by the following: TC=200+2q2, where q is the quantity produced by your firm. Given this total cost, the firm's short-run marginal cost is given by: MC=4q. If the mark..
Mexican interest rates are normally substantially higher than U.S. interest rates. a. What does this imply about the inflation differential (Mexico inflation minus U.S. inflation), assuming that the peso interest rate is the same in both countries? D..
Why would legislators most likely ask interest groups to help shape public policy?
If the government sets a maximum price for gasoline above the equilibrium price:
What value of y survives as a solution if all firms are competing for high ability workers.
Analyse the causes and consequences of near zero interest rates in the USA since 2008. In theory, what impact should this policy have had on the value of the US dollar? Explain why this hasn't necessarily been the case over the last seven years.
Some of the largest import tariffs tax on imported goods is on shoes. Strangely, the cheaper the shoes, the higher the tariff.
Suppose that Iggi and Kurt begin trading ice cream and waffle cones with each other. Illustrate what can be said about the trade patterns between Iggi and Kurt.
When sellers have more information about hidden characteristics of a good than buyers have, more low-quality units are likely to be sold than high-quality units.
A reduction in monopolist’s fixed costs would:
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