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Why do cartel deals tend not to last?
a. Cartels create more competition
b. Cartel profits are lower than competitive profits
c. Each firm in the cartel has a dominant strategy to be uncooperative and defect from the cartel agreement
A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $3581 per year, paid at the beginning of each year, in which case maintenance is provide. What is the most she should pay f..
Why is the monopolistic competitor's demand curve more elastic than a pure monopolist's, but less elastic than a pure competitor's?
What is the equilibrium price in this market? Round the equilibrium price to the nearest cent.
Suppose the government decreases taxes by 20 percent. Describe the effects to the equilibrium price level and GDP. Make sure to address consumption, disposable income, and aggregate demand in your answer.
A contractor is considering whether to buy or lease a new machine for her layout site work. Buying a new machine will cost $12,000 with a salvage value
It is no secret that China has a large trade surplus with the United States. Our open and large markets are very attractive to manufacturers all across the globe. Is it in the long run interest of the United States to maintain such trade deficits? Is..
What kinds of changes in underlying conditions can cause the supply curve to shift? Give some examples and explain the direction in which the curve shifts.
Consider an exchange economy with two consumers and two goods. The consumption sets of the consumers are R2+. Each consumer has the same utility function u(x1, x2) = min{x1, x2}. Provide a complete characterization of all the allocations which are in..
1. Why does "government failure" happen? 2. How can the government's power to coerce (influence economic behavior) be economically beneficial?
When interest rates rise, people are:
Please discuss the current state of the macroeconomy in Canada. In particular please discuss the growth rates and gross domestic product.
Consider a small open economy in the short run where the government decreases the tax rate. What direction (+/-/or no change) does the tax decrease impact: Y, Money Demand, r, e, and C. You own a hat company which sells both domestically and abroad. ..
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