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1) What is the definition of Market Competition? List a product that you use that falls closer to the perfect competition model.
A) What is the definition of a (Market) Monopoly? List a monopoly (not utilities or public services) product or service that you use.
B) What is going on with Economists in their assessment of benefits and costs of PC and Monopoly?
C) What is the distinction between Short Run and Long Run and which ones matter most?
Assume a firm has just released a large advertising campaign that turns out to be highly successful. Assume the costs have already been included in the analysis. Explain what happens to the firm. Be sure to talk about equilibrium price and quantity f..
Illustrate the effect on the marketplace for a hr. of babysitting services 30 yrs into the future when children born today.
The steady-state rate of unemployment is U/L = s/(s+f). Suppose that the unemployment rate does not begin at this level. Show that the unemployment rate will evolve over time and reach this steady state. (Hint: Express the change in the number of une..
NonLegal Seafoods (NS) sells its excellent clam chowder in Boston, New York, and Washington. NS has estimated that the demands in these three markets are respectively QB = 10,000 − 1,000PB, QNY = 20,000 − 2,000PNY and QW = 15,000 − 1,500PW, where qua..
Explain the meaning of a Nash equilibrium when rms are competing with respect to price. Why is the equilibrium stable? Why dont the rms raise prices to the level that maximizes joint prots? What is the DWL in this model?
The town council of the suburb of Happy Valley has concluded that to breakeven from a fiscal point of view, a new housing unit must have a taxable value (v*) of $250,000. Land in Happy Valley currently sells for $40,000 an acre ( r). Using the rule o..
Suppose we wanted to know what the effect of extending the maximum number of weeks of unemployment insurance (UI) benefits was on the duration of unemployment. A researcher from a university in California suggests that more weeks of UI benefits leads..
The admissions office wants to determine how many in-state and out-of-state students to accept for next fall’s entering freshman class. Tuition for an in-state student is $7,600 per year while out-of-state tuition is $22,500 per year.
Identify a type of market structure in which a minimum wage law or labor union would help entry-level workers, then explain why it would help them.
Ocean water contains .9 ounces of gold per ton. Method A costs $550 per ton of water processed and will recover 90% of the metal. Method B costs $400 per ton of water processed and will recover 60% of the metal. The supply of ocean water is essential..
Why was it more common for railroads and timber companies to provide health insurance in the early 1900s then for textile mills or accounting firms?
If the company issues debt to finance the project what would be the value of the company. What would be the value of the levered equiy.
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