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In the argument for why perfect competition is allocatively efficient, the price that people are willing to pay represents the gains to society and the marginal cost to the firm represents the costs to society. Can you think of some social costs or issues that are not included in the marginal cost to the firm? Or some social gains that are not included in what people pay for a good?
compute the breackeven output quantities for each alternative. What is the difference between movements along IS and LM curves and shifts of the entire curves.
During course of twentieth century, average workweek in United States has gotten shorter and Americans have enjoyed greater amounts of leisure time. How has this development affected potential GDP and labour productivity.
Illustrate what varibles other than price appear to have the biggest impact on the demand for mcdonald's products. how much influence does the company have over these varibles.
Fiberia Accessories, a clothing retailer, is planning to introduce a new line of sweaters as part of the winter collection for $65 with an inventory of 1500. The main selling season is 60 days between November and December. Calculate the daily sales ..
illustrate why lower taxes in the current period but higher taxes in the future may make some consumers better off.
Consider the first price auction. Write down the payoff matrix also find all Nash equilibrium
q.the federal government occasionally goes through the process of reauthorizing and modifying the state childrens
find an identical output for each firm that maximizes joint profits.
Is this projected outcome consistent with the law of demand? What is the price elasticity of demand associated with this pricing decision? Should you increase the price?
How could they continue to operate at a loss? 3. You want to determine the profit-maximizing production quantity for a monopolist.
Suppose firms compete in quantities. How much does each firm sell in Cournot equilibrium.
Identify a market which you feel is perfectly competitive. The firms in this structure are considered price takers, are the firms in the market you chose all selling their product at the same price? Why or why not?
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