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Two physical therapy firms want to merge. The price elasticity of demand for physical therapy is -0.40. Firm A has a volume of 10,400, fixed costs of $50,000, marginal costs of $20, and a market share of 8%. Firm B has a volume of 15,600, fixed costs of $60,000, marginal costs of $20, and a market share of 12%. The merged firm has a volume of 26,000, fixed costs of $100,000, marginal costs of $20, and a market share of 20%. a. What are the total costs, prices, revenues, and profits for each firm and for he merged firm? b. How does the merger affect markups and profits?
A monopoly or oligopoly showing no economic profit or loss has
The bank is paying 10.13% compounded annually. The inflation is expected to be 11.77% per year. What is the market interest rate?
Which factors make the strongest impact on your personal labor productivity, or that of your closest family member, if you don't have a job? What actions can a person take to increase his or her labor productivity?
Whether the U.S. Congress press a tariff raising the cost of Japanese compute. Illustrate what are four mutually exclusive states of the world that you should be concerned about
q.a country that does not currently tax cigarettes is considering the introduction of a 0.40 per pack tax. the
“Rising oil prices will lead to decreased employment, lower wage rates and decreased real money balances.” Comment on this statement with the help of an AD-AS diagram and explain the short-run and long-run adjustment processes.
Distinguish between the following views of monetary policy
Contractionary monetary policy
You are considering entry into a market in which there is currently only one producer, the incumbent monopolist. If you enter, the incumbent can take one of two strategies, price low or price high. If they price high, then you expect a $60k profit pe..
What are the pros and cons of trade restrictions? What are the pros and cons of free trade? Which is better in your opinion?
Can you identify the consequences of a strong dollar or a weak dollar in the United States? Which direction do you prefer for the overall health of the American economy? Should the U.S. take measure to ensure that the dollar retains its dominant role..
Governments often need to raise revenues to fund public projects like schools, road maintenance, parks, etc. One way governments raise revenue is to place taxes on the sale of certain goods. Suppose a government is debating whether to raise taxes on ..
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