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How high should a monopoly set its prices in order to maximize profits? When you post a response to this question, place it in the context of one of the following examples:
A geographically isolated gas station.
A concert on campus.
Soft drinks at a sporting event.
A prescription drug.
q. the gop deflator in econoland is 200 on january 1 2005. the deflator rises to 242 by january 1 2007 and to 266.2 by
change if buyers pay $8 every unit to the intermediary but sellers offer to rebate part of that expense to buyers.
Calculate the tax rate on wages necessary to pay Social Security benefits this year assuming the system is operating on a pay-as-you-go basis. calculate the tax rate necessary to pay promised benefits on a pay-as-you-go basis. What can be done to low..
Why does the government grant patents to investors? Why does the government give monopoly power to utility companies?
Describe the various forms of direct response advertising. Discuss some of the reasons for the success of direct response advertising.
What output will firm choose. What will be monopolistic competitor's average fixed cost at output it chooses.
Find a single price that all mutually preferred trades can occur. What are the gains from trade? Now suppose a $1.50 per-unit tax is levied on Larry for each unit sold (that raises MC by $1.50). Now find all mutually preferred trades and the trading ..
Macroeconomics: How does government borrowing crowd out investment? What is the relationship between government borrowing and budget deficits?
Suppose that the natural rate of unemployment in a particular year is 4 percent and the actual rate of unemployment is 11 percent. Use Okun’s law to determine the size of the GDP gap in percentage-point terms. If the potential GDP is $500 billion in ..
A country that must adopt foreign exchange controls because of a misaligned exchange rate sacrifices the use of both monetary and fiscal policy instruments to influence domestic income and the interest rate.” Explain.
Elucidate the way in which short-run AFC, AVC, ATC also MC vary as the output of the firm increases.
If people do not have a complete mental picture of their total utility for every level of consumption, how can they find their utility-maximizing consumption choice? As a general rule, is it safe to assume that a higher wage will encourage significan..
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