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Why do we claim that monopolists reduce output to increase prices?
How is this different from a perfectly competitive firm? What does this imply about the overall efficiency of monopoly as a market structure?
Explain the relationship between the economic concept of diminishing marginal productivity and the principle of increasing marginal costs?
"A monopolist like Spago (a famous Hollywood restaurant frequented by movie stars) can fully pass on all the marginal cost increases to its diners through higher prices since it is a price maker and can charge any price it wishes." True, False, or Un..
How does the market equilibrium and profits of a typical corn farmer change in the short run? Explain briefly.
Assume the money supply (M) is $1,200 billion, bank deposits (D) are $800 billion and the required reserve ratio is 10%. What would the Fed have to do (in terms of open market operations) to lower the money supply by 5%? Explain. (Note assume that th..
How might you determine whether flute-playing ability is a highly heritable trait? If you want to improve your flute playing and someone tells you that musical ability is heritable, should you stop practicing?
If the financial account balance must exactly offset the current account balance, why do government accountants bother to record the financial account?
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your younger sister needs 500 to buy a new bike. she has opened a lemonade stand to make the money she needs. she is
Market demand is Qd = 400 - 10 Price; Market supply is Qs = 40 + 30 Price. Find the price elasticity of demand when Price = $30.
Suppose that in the United States, investment is $1,600 Billion, savings is $1,400 billion, government expenditure on goods and services is $1,500 billion, exports are $2,000 billion, and its imports are $2,500 billion. What is the amount of tax reve..
Assume that the two rival "Super Stores", Walmart and Target both adopt price matching rules. If people can discover lower advertised values on any items they sell, then they will match the lower prices.
In a small open economy in a flexible exchange rate system with perfect capital mobility, there is complete ________ crowding-out of ________ policy.
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