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What is meant by product differentiation? Why does this result in imperfect competition? How can international trade be based on product differentiation?
why does it usually first experience increasing returns to scale?
What is the dollar value of the total surplus (producer surplus plus consumer surplus) when the allocatively efficient output level is being produced How large is the dollar value of the consumer surplus at that output level
(The Human Body and the U.S. Economy) Based on your own experiences, extend the list of analogies between the human body and the economy as outlined in this chapter. Then, determine which variables in your list are stocks and which are flows.
the manager of Burger Man - a firm that rents a spot to sell burgers at Easy University. Based on estimates provided by a consultant, burger demand (monthly) and cost functions for meals are Q= 2500-250P and C= 500+ 2Q (MC=2), respectively.
Jones Company operates within a monopolistically competitive industry. The estimated demand for its products is given by the following inverse demand function P = 1760 - 12Q It finance department has estimated its total cost function as TC = 24,00..
Joe Sabia, an assistant professor of public policy at American University in Washington, D.C., says that a 10 percent increase in minimum wage reduces retail employment by 1 percent and reduces employment among young workers by 3.4 percent.
A group of 20 doctors are considering forming a new medical group and have asked you to prepare a report on whether they should build a facility in an area within 30 miles of the downtown center of your 500,000 population city for $100 million dol..
Alvin's utility function is U(W) = W. Barry's utility function is U(W) = W^2. Carl's utility function is U (W )= sqrt(W) . Each has wealth of only $100. An investment of that $100 has a 10% chance of netting $1,000 and a 90% chance of netting a lo..
Suppose David spends his income (I) on two goods, x and y, whose market prices are px and py, respectively. His preferences are represented by the utility function u(x; y) = lnx + 2lny (MUx = 1=x;MUy = 2=y). a. Derive his demand functions for x and..
A labor economist estimates a regression of log earnings on schooling, experience, ability, as measured through, and interactions in schooling and experience,
Assume that impediments to collusion are minimal, in the following sense. All bidders involved in a bidding ring can costlessly determine each other's valuations. Furthermore, the ring has no problem making (and enforcing) agreements
How much excess reserve does the deposit generate for the bank?(b). What is the maximum amount of new money that can be created in the banking system as a result of this deposit? Show all work. (c.) What is the Discount Rate in the banking system?
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