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In many industries, such as supermarkets, banks, cell phonecompanies, etc., because of mergers our choices as consumers arereduced to two or three competitors. Do you think thisis good for the economy? What are some of the reason whymergers happen? Should the government do somethingabout this?
Because net exports are counter-cyclical, analyze how the following change during an economic expansion: Consider the case in the context of a flexible exchange rate and a fixed exchange rate.
According to an article in BusinessWeek Online, the company is not only the world's largest shipbuilder but also manufactures other industrial goods ranging from construction equipment and marine engines to building power points and oil refineries..
Expalin why might a firm making a large economic profit from its existing product employ a fast-second strategy in relationship to new or improved products.
1. Strictly speaking, pure competition never has existed and probably never will. Then why study it 2. Why is the equality of marginal revenue and marginal cost essential for profit maximization in all market structures
Assume the firm raised the price to $4.00 while increasing the advertising expenditures by $100. Would this be beneficial. Explain. Illustrate your answer with the demand schedule.
If Greece leaves the Euro zone there will be macroeconomic consequences. The possible collapse of the Euro zone acts as a shock to sellers around the world worried about international economic stability. Show the short run impact of such an event..
Consider a monopolist has a marginal cost such that MC=Q. In that market demand follows the equation Q (of demand)=500-.5P. What is the price the monopoly will charge? How much will the monopoly produce?
If the price of 1 pound of cereals is $10 and the price of a sword is $100, what is the wage rate paid to Hobbits in the Shire? How many Hobbits work in the cereal sector? In sword sector? Because of the War of the Ring, the price of a sword went ..
In other situations it would be reasonable for a purely competitive wheat farmer to raise his price per bushel because he could reduce his variable costs by selling less at a higher price. True or false, and why?
Suppose the government is running a surplus (rather than a deficit) and aggregate demand is so high that any further increases in spending will cause only inflation, with no increases in production. What should the government do with the extra mon..
If the desired fiscal stimulus is $20 billion and the desired AD increase is $50 billion, we can conclude that the MPC is:
You are the manager of a firm that produces and markets a generic type of soft drink in a competitive market. In addition to the large number of generic products in your market, you also compete against major brands suh as Coca-Cola and Pepsi.
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