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Concentration ratios have often been used to note the tightness of an oligopoly market. A high concentration ratio indicates a tight oligopoly market, and a low concentration ratio indicates a loose oligopoly market. Would you expect firms in tight markets to reap higher profits, on average, than firms in loose markets? Would it matter if the markets were contestable? Explain your answers.
A developer has recently offered US Airways 2.5 million for the land. Should US Airways gives training facility at this locations.
Suppose now that the monopoly can offer a menu of different quality levels at different prices. Find the profit maximizing menu that the monopoly will offer in each of the two cases considered in part (a) above.
In what ways does the Krugman model of trade differ from the Heckscher-Ohlin model of trade? In what ways does the Linder theory of trade differ from the Heckscher-Ohlin model of trade?
The long-run average total cost curve of a natural monopolist:
If you will receive $1000 in one year (maybe a bonus from your company) and in two years you will receive $1500 ( a second bonus).
There are two players 1 and 2. re are two cards: "High" and "Low". Player 1 chooses at random one card. Write a strategic form also find optimal strategy of player.
Which of the following statements best characterizes perfect competition?
Suppose that the privatization of the social security system raises the savings rate (and, hopefully, the investment rate) in the U.S.
What are the outstanding faults of the economic system according to Keynes? What is the social philosophy implied by the General Theory? What gave The General Theory a revolutionary quality, and how was it (mis)interpreted, according to Hyman Minksy?..
Economists use the word "capital" to mean
In which cases are the Coase theorem's assumptions are likely to be true? Explain.
What is the WACC for a firm with 25% debt, 20% preferred stock, and 55% equity if the respective costs for these components are 5% after tax
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