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If there is a natural monopoly
one firm owns all the natural resources in the production of a good, such as owning the diamond mines needed to produce diamonds.
there are close substitutes for the good but by nature they are the types of substitutes that do not compete with the monopoly.
it is cheaper for one firm to produce the entire industry's output rather than have two or more firms produce the same output.
one firm has the patent to the good.
Three fans are to be installed at a mine site; one immediately at a price of $260,000, one in five years at an estimated cost of $310,000 and the third in eight years at a cost of $480,000. Find out the total expenditure as a present value if the ..
The general demand function for a good, Good A, is: Is Good A a normal good or an inferior good? How do we know exactly?
Determine the long-run marginal cost function for electricity generation and determine the short-run average variable cost and marginal cost at the output level in Part (d)
Assume that both magazines are owned by the same publishing company that maximizes the combined profits of the magazines. Will the company make the same choice as in the noncooperative game (i.e., owned by different publishing companies)?
Describe the importance of cost of capital with respect to the actual financial problem of most manufacturing companies.
How does and increase in consumers income affect the demandfor mcds big mac hamburgers? if the demand curve shifts, indicate whether it will shift to the right and draw a graph to illustrate the shift. label graph appropriately.
A major step toward mastering the economic way of considering is learning to reason in terms of supply and demand. I have listed many questions below to answer and practice these ideas.
Give a specific example for each ( US Companies ). Which one is better market from the stand point of producers? Which one is better market on the stand point of consumers?
Assume that the Federal Reserve sells government securities from its existing holdings to financial sector and non bank public. Trace by the expected consequences of this secondary market action on banking system
What is meant when a monopoly firm is described as a price maker? How is a price maker different from a price taker? Is a monopoly ever a price taker?
Discuss the relationship existing between production and cost. What is the MC function of the above TC function?
Potato chip industry in Northwest was competitively structured and in long run competitive equilibrium; companies were receiving a normal rate of return and were competing in a monopolistically competitive market structure.
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