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Assignment
After watching the video clip from Forrest Gump, consider that Forrest's good luck of "being in the right place at the right time" allowed him to operate as a monopoly. Typically, the fishing industry is a highly competitive industry where economic profits are rarely made in the long run. However, in a twist of fate, Forrest's boat is the lone survivor after a hurricane washes ashore and destroys all the other shrimp boats.
Consider the barriers to entry facing potential competitors in Forrest's monopoly market. The more contestable a market, the closer it will be to a perfectly competitive market, whereas the less contestable a market, the closer it will be to a monopoly.
What barriers to entry exist in other industries that allow certain firms to operate as a monopoly? Are these barriers contestable?
One of the elements of monopolization is a. monopoly pricing b. having a monopoly
Explain how a firm values the contribution of workers to its profitability. Would a profit-maximizing competitive firm ever stop increasing employment as long as marginal product is rising?
Method B will have a first cost of $120,000, an operating cost of $8000 per year, and a $40,000 salvage value after its 3-year life. At an interest rate of 12% per year, which method should be used on the basis of a present worth analysis?
Explain what to do with each of the four tools of Monetary Policy to accomplish this policy. Please give data to back up your position.
Why might price collusion occur in oligopolistic industries Assess the economic desirability of collusive pricing. What are the main obstacles to collusion? Speculate as to why price leadership is legal in the United States, whereas price-fixing i..
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the airline market was deeply impacted by the recession of 2008 and by the following slow recovery. describe
Monopolies always earn economic profits because of their privileged market positions. "How would you evaluate this statement"?
One way to reduce the amount consumers spend on health care is to raise the price of health care by increasing the health insurance copayment
1) Whether an asset is "liquid" often depends on what situation you are in. For each of the pairs of assets below, which is more liquid in the particular setting? You want to buy a sofa: A savings account or currency You want to trade for a bolo..
Annual cost estimates are expected to be high to ensure readiness at any time. Use a spreadsheet and incremental ROR analysis to determine which manufacturer offers the best economic choice.
In other words, does it matter whether the deficit is caused by lower taxes, increased defense spending, more job-training programs, and so on In your analysis, what role do fiscal and monetary policies have to lead to higher
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