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Consider three markets: M1, M2, and M3. There are features of these markets that the Department of Justice observes and features the Department of Justice does not observe. The DOJ observes that M1, M2, and M3 have one, two, and three firms respectively, that output in all three markets is non-differentiated, and aggregate demand in each market is given by P = 100-Q. The DOJ does not observe firms costs and therefore assumes that marginal costs are constant and equal to c1, c2, and c3 in the three markets.
a. What price will we observe in M1?
b. If firms are cournot competitors, what price will we observe in M2 and M3?
c. What must be true about costs for consumer surplus to be higher in M1 than in M2?
One of the stages of economic growth is capital intensive, where wealth is created throught the efficient use of money and industrial manufacturing occurs. what latin american country fits into this stage and why.
The information below describes the real GDP per capita for the country of Bedrock for the period of 1975 to 1991.a. If a new business cycle began in 1975, how long was this cycle b. The peak occurred in which year The trough occurred in which year c..
Aside from maximizing profits, assess the factors that managers must consider when making the decision to outsource or integrate forwards or backwards considering which factor would be most influential for decision-making.
After Henry ford invented the assembly line for producing automobiles, other automobile companies copied his invention. The new technology rise the economies of scale in automobile producing.
Why might a parent company like McDonalds or Hilton choose to franchise its local outlets rather than own them and staff them with employees?
Draw two hypothetical iso-cost curves: one with annual leasing cost per vehicle being relatively inexpensive to the annual salary per mechanics, and another with annual leasing cost per vehicle being more expensive to the annual salary of mechanic..
The budget deficit is of tremendous concern and all law makers agree that some measures should be taken to reduce it. However, The Republicans see the issue as a spending problem, while the Democrats see it as a revenue problem.
Give a specific example for each ( US Companies ). Which one is better market from the stand point of producers? Which one is better market on the stand point of consumers?
How does your decision to invest in a college degree add to your capital stock Show this on your projected production possibilities frontier for ten years from now compared to your production possibilities curve without a college degree
Some reject fiscal stimulus measures in all policy forms. Explain what the various limitations are to a successful fiscal stimulus. Be sure to consider the damaging activities and decisions of (a) private corporations, (b) comm..
Consider the following two alternative designs. Design A has an initial cost of $300,000 and net annual revenues of $55,000; Design B had an initial investment of $450,000 and net annual revenues of $80,000. A 10% MARR was used over the 10-year pl..
Instead of asking for a price, you offer to give them the product in exchange for 50% of their cost savings. Describe the information asymmetry, the adverse selection problem, and why soft selling is a successful signal.
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