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Assume there are initially 10 firms, each with a 10 percent market share.
a. What is the initial HHI?
b. What will the HHI become if two firms merge?
c. What will the HHI become if three firms merge?
How might you apply what you learned about supply and demand from the simulation/video to your workplace or your understanding of a real-world product with which you are familiar?
what must the Bank of Canada have set the money supply at (b) Taking that level of the money supply as fixed, suppose nowthat people expect the Bank of Canada to raise the money supply by11% over the next year, what will be the new price level tod..
Consider a city that has a number of hot dog stands operating throughout the downtown area. Suppose that each vendor has a marginal cost of $1.50 per hot dog sold and no fixed cost. Suppose the maximum number of hot dogs that any one vendor can se..
Over what horizon is the assumption of fixed prices a valid one? Explain.
How would you use data from foreign exchange market to decide between these two hypotheses?
A company is going to upgrade it machinery. It costs $150,000 to buy the machinery and have it installed. Operation and maintenance cost are $1500 per year for the first 3 years and then increase by $500 per year for the machine's 10-year salvage ..
Please provide your perspective on whether this type of growth can be sustained and for how long?
What does the answer to Exercise 19.16 say about the effects of sample size on the power of an experiment?
Assume that the Bank of Ecoville has the following balance sheet and the Fed has a 10% reserve requirement in place: BALANCE SHEET FOR ECOVILLE INTERNATIONAL BANK ASSETS LIABILITIES Cash $33,000 Demand deposits $99,000
Assuming they were profitable before Dave's entry, what happens to the existing theaters' profits? Use two graphs, one for the market and one for the existing firms, to illustrate your answer.
Define Q to be the level of output produced and sold, and assume that the firm's cost function is given by the relationship TC = 20 + 5Q + Q2 Furthermore,assume that the demand for the output ofthe firm is a function of price P given by the relations..
How do nontrade domestic economic policies of rich nations affect the export earnings of developing countries? What factors do you think are most important in implementing a successful, outward-looking industrialization strategy
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