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1. Explain why government regulation is or is not needed, citing the major reasons for government involvement in a market economy. Provide support for your explanation.
Based on predatory pricing theory, the predatory company sets price below marginal cost, the relevant cost of production. Competitors must then lower their prices below marginal cost,
Calculate the profit-maximizing price and quantity of output and economics profits if MicroChip acts as a monopolist and calculate the price/output combination and total economic profits that would result.
Which of the following is NOT an example of an externality? Explain why the other examples are externalities and why the one you selected is not.
What a makes Sally indifferent between the two plans? As the sales manager, which plan do you select? Give an explanation that shows why this plan is optimal.
If a manager that takes over a furniture factory and realizes immediately that it was throwing away at least $100,000 a year worth of wood scrap
Prepare a recommendation for each company. Should your recommendations be the same for both companies? If not, what are the differences?
1. Why may an expansion of the money supply have a relatively small effect on national income?2. Why may any effect be hard to predict?
Dell Computer Corporation, the world's biggest personal computer maker, is keenly aware of everything its rival PC manufacturers decide to do.
Go to the website http:// www.fin.gc.ca. Click on "Budgets", then on "Archived Budget Documents", then on "2009", and finally on "Budget in Brief.Is the reasoning presented consistent with the model.Does knowlege of the model help you understand this..
What is a natural monopoly? Can you think of an example of a natural monopoly? If you can, explain why you consider it a natural monopoly.
Describe a real-world situation (either in the private sector or public sector) in which your answer to (A) could have been used to achieve either a moreefficient or more desirable outcome for the relevant stakeholders.
PUBP720: Managerial Economics - Make the first order partial derivatives of the Lagrangian and set them to 0 - What is the slope of the budget line? Does the slope of the budget line depend on consumer preferences? Why or why not?
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