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What are some similarities and differences between a pure monopoly and oligopoly? What would be a good example of a company in a monopoly and one company in oligopoly for comparison?
Suppose that there are two firms (Firm A and Firm B) in the market for frozen rounded articulate condiments (FRAC). Also assume that the market demand for FRAC is given by P= 15-Q where Q is the total quantity in the market from the two firms. Find t..
It also has $900 million in outstanding debt. If its equity cost of capital is 15%, and its debt cost of capital is 12%, and its effective corporate tax rate
In the short run, the marginal cost curve crosses the average total cost curve at:
Consider an open economy with fixed exchange rates. Suppose that foreign goods become more fashionable--that is, the demand for foreign goods at a given exchange rate increases. Describe how this change affects output and the interest rate if: a) the..
Suppose the cost function is a multivariate of the type: where Q is output and K, capital; L, Labor; and M, materials are inputs. Find the marginal products of the inputs. Discuss the returns to scale. What is the relationship between returns to scal..
Over the next twenty years, the average overall rate of inflation in Mexico is expected to be 8% per year, while in the United States the overall rate of inflation is expected to average 2% percent per year. Then what would you expect the average ann..
A large wood products company is negotiating a contact to sell plywood overseas. The fixed cost that can be allocated to the production of the plywood is $800,000 per month. The variable cost per thousand board feet is $155.50. What is the domain of ..
why would china want its own currency to be undervalued relative to the u.s. dollar? how does china maintain an
Graph a hypothetical PPF for a wealthy and developing country. Each country on your graph should have the same degree of concavity, with the two outputs of goods and services labeled "Other Goods and Services" on the X-axis and "Clean Air and Water" ..
A nation with abundant capital resources tends to be an exporter of: A maximum limit set on the amount of a specific good that may be imported into a country over a given period of time is called a:
This week there was news that some prices are rising. I heard that in some countries where corruption is high the prices are also higher. I wonder if there is causality or just both at same. It would be interesting to find some material to support if..
Credit Risk faced by commercial banks: Moral Hazard
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