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Suppose that the demand curve for cantaloupes is P=120-3QD, where P is the Price per pound (in cents) of a cantaloupe and QD is the quantity demanded per week. Suppose that the supply curve for cantaloupes is P=5QS, where QS is the quantity supplied per week in pounds. (a) Set up a diagram that shows the supply and demand curve. (b) Calculate the equilibrium price and quantity. (c) Explain what would happen to the quantity bought and sold in this market if the government were to make it illegal for sellers to charge more than 50¢ per pound for cantaloupes.
Entry of firms in a monopolistically competitive industry is characterized by two "external" effects. What are these effects and how do they affect a monopolistically competitive firm. How are consumers and incumbent firms influenced by these exte..
Using the table of information below answer the following questions using Benefit to Cost ratio analysis.
The U.S Postal Service (USPS) is a monopoly because the federal government has blocked entry into the market for delivering first-class mail. Is the USPS also a natural monopoly How can we tell what would happen if the law preventing competition ..
Sprint acted as a well-managed business that takes the actions necessary to remain competitive in a very competitive marketplace.
Academic response to Required Rate of return. Calculate the required rate of return.
Find National Trade Data. Determine the trade balance between the U.S. and China for the most recent five year period
Why can the distinction between fixed costs and variable costs be made in the short run? Classify the following as fixed or variable costs: advertising expenditures, fuel,
You are division manager at Toyota. If your marketing department estimates that the semiannual demand for the Highlander is Q = 100,000 – 1.25P, what price should you charge in order to maximizes revenues from sales of the Highlander?
Explain what happens to consumption, investment, and the interest rate when the government increases taxes.
Answer whether the following statements are true or false, explaining your answer in each case.
Explain how can a domestic market be protected. If a country had protected domestic market, what would be the likely effect on its balance of trade.
Explain the influence that transferable property rights versus non-transferable property rights, has on individual decision making.
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