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Some economists argue that a monopoly’s high market power enhances research and development. However, a good argument against that could be:
a. Monopolies cannot afford basic research.
b. A monopoly may have no clear incentive to pursue new research and development.
c. No one has attempted to gather any evidence on this subject.
d. A monopoly would not have a research and development program.
How does the "rule of thumb" for the profit maximizing advertising per sale level change if MC is equal to zero. Provide the new equation and explain!
Gina Picaretto is production manager at the Rich Manufacturing Company. Each year her unit buys up to 100,000 machine parts from Bhagat Incorpo- rated. The contract specifies that Rich will pay Bhagat its production costs plus a $5 markup (cost- p..
Which of following industries would you classify as an oligopoly? Which would you classify as monopolistically competitive? Explain your answer.
Suppose madison has used 45,000 of her money to start a window washing company. Suppose that the money otherwise could have been invested elsewhere and earned as much as a 12 % annual rate of return. The window washing company's revenue as well as it..
Opportunism in health care is especially perceptible in the health insurance markets. Consider the area in which you live, specifically your state and local communities. Evaluate the social-cultural issues that are influencing adverse selection in in..
Describe the macroeconomic factors
1. consider a demand curve of the form qd20-2p. also consider a supply curve of the form qs2p-4. graph both curves
Assume that a simple society has economy with only one resource, labor. Labor can be employed to produce only two commodities- X, a necessity good (food) and Y, a luxury good ( music and entertainment). Assume the economy produced at a point inside..
Computer software utilizes skilled labor relatively intensively.If trade between the U.S. and India is free, which good will the U.S. export and which will it import? What will happen to production of the two goods (increase or decrease) in the U...
Jean-Baptiste Say argued that entrepreneurs should be called the fourth factor of production because they organize the other factors and make things happen or else.
Analyze the past, current, and future cost considerations of the company and, on the basis of your costs analysis, create a list of strategies to enhance the company's profit. In your analysis, include the following information about the various c..
Suppose that you are a consultant to a firm that publishes books. Suppose that the firm is about to publish a book that will sell for $24 a copy. The fixed coat of publishing the book are $7200, the variable cost is $18 a copy. What is the breakeven ..
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