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(1) Why does a monopoly always operate on the elastic part of the demand curve?
(2) People are always complaining about Facebook: It changed the way its news feed works, the privacy settings are awful, there are too many game notifications, and so on. Recognizing dissatisfaction with Facebook, Google tried three times to enter the social networking market, first with Buzz, then with Wave, and now with Google Plus. Users say that the Google Plus platform is far superior to Facebook's, yet Google Plus appears to be failing. Explain why consumers might reject a superior product for an inferior one in a market like this.
(3) Indicate whether the following is true or false, and explain your answer: It seems strange to the casual observer that bestselling novels sell for the same price as novels that are of much lesser quality (and much lower sales volume). Clearly, the publisher, who has a monopoly on the rights to such books, must not be accounting for the strength of demand for the books in question, and therefore is failing to maximize profit.
students are willing to pay 700 for a computer and 100 for additional software. workers are willing to pay 500 for a
During the 1980’s President Reagan pushed for significant tax cuts as a way to promote consumer spending. This extra money that consumers found they had also began to drive up prices causing the Federal Reserve to enact monetary policy to combat infl..
What uniform series of cash flows is equivalent to a $100,000 cash flow, fifteen years from now, if the uniform cash flows occur at the end of the year for the next fifteen years and the periodic interest rate is 8.5 percent compounded yearly?
price fixing is a per se violation of the clayton antitrust act. from the materials in the library and the internet
A firm has the following total cost TC function TC = Q3- 30Q2+ 400Q + 500 , At what level of output the firm's marginal cost MC is $100?
Which of the following are the Nash equilibrium payoffs (each period) if the game is repeated 10 times? Suppose the game is infinitely repeated. Then the "best" the firms could do in a Nash equilibrium is to earn per period.
How has the minimum wages or rent controls effected the economy of the country?
Mr. Paul is consuming products X and Y optimally and deriving total utility of 10 utiles. when his budget is increased from K80 to k81, his utility increases.
HoneyBee Farms, a medium size manufacturer of honey, operates in market that fits competitive market definition relatively well.
Evaluate how well the design of the First IB web site meets the needs of a potential small business customer. Discuss the elements of the site that work particularly well in meeting the needs of this type of site visitor.
explain why a capitation payment system might provide incentives for physicians to be more efficient than they would be under traditional FFS systems. What incentives exist under a capitation system for providers to provide the appropriate quality..
During the Great Depression, food was left to rot in the fields or fields that had once been actively cultivated were left fallow. Use one of the principles of economy-wide interaction to explain how this could have occurred.
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