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1. What is exclusive dealing? How might it reduce competition, and when might it be acceptable?
2. What is predatory pricing? How might it reduce competitive, and why might it be difficult to tell when it should be illegal?
3. If public utilities are a natural monopoly, what would be the danger in splitting them up into a number of separate competing firms?
You are a manager for monopolistically competitive firm. From experience, the profits maximizing level of output of your firm is 100 units. However, it is expected that prices of other close substitutes will fall in the near future. how should you ad..
A monopolist estimated that the own-price elasticity of demand for its product is -4.5 and its advertising elasticity of demand is 1.5. Assuming these elasticities are constant, what fraction of the firm's revenues should the firm "reinvest" in adver..
For the last several years, the money supply in the fictitious nation of Mauritania has been rising by 10% annually, and inflation has been running at 8%. The central bank is going to cut growth of the money supply back to 3% annually. Which of the f..
The United States economy is experiencing a moderate economic downturn. The Republican President has addressed the downturn using stereotypical Republican methods. The economy failed to improve significantly, although there WAS some improvement. Duri..
If technological change shifts the long-run aggregate-supply curve to the right, it will also do which of the following?
In order for a price-discrimination scheme to be effective at boosting profit, the seller must...
US national health expenditure was $7,026 per person in 2006 and $4,790 in 2000. The Consumer Price Index had a value of 201.6 in 2006 and a value of 172.2 in 2000. Adjusted for inflation, how much was spending in 2000? Why has the share of healthcar..
Indicate profit- maximizing level of output. If the price was $3 and fixed costs were $5, what would vaiable cost be? At what level of output would the firm produce?
Which leads to higher interest rates, which leads to higher output? Which leads to higher inflation? Which represents a more hawkish Fed? Which represents a more dovish Fed?
Nominal GDP increased from roughly $10.3 trillion in 2001 to $14.4 trillion in 2008. In the same period prices rose on average by roughly 19.78 percent. By how much did real GDP increase?
Suppose the residents of Toadhop live on the Quabache River which is a river prone to flooding. Suppose there are 1000 (type A) people who value flood control more than 1000 (type B) people. If the citizens of Toadhop do not work together, what is th..
the manufacturer of perfume enters into agreement with several distributor about the price at which the distributors can resell the perfume. The manufacturers who do not agree to the pricing suggestion are not able to sell the perfume.what is The..
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