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Even in firms in a monopolistically competitive market collude successfully and fix price, economic profit will still be competed away if there is unrestricted entry. Explain. Will price be higher or lower under such an agreement in long-run equilibrium than would be the case if firms didn't collude? Explain.
1. What are the four areas from which capital can be obtained to expand assets 2. What is the advantage of long term debt (bonds) verses short term debt (current) 3. How can you determine when a bond comes due 4. When emergency loans are taken, when ..
What do economists believe is the relationship between the price level (P) and real output (Y) in the short run and in the long run, and how does this answer differ depending on which time frame is being considered How are these beliefs reflected ..
Beer and pizza are complements because they are often enjoyed together. When the price of beer rises, what happens to the supply, demand, quantity supplied, quantity demanded, and the price in the market for pizza.
The problem in economics in price theory deals with deriving maximum marginal utility and marginal rate of substitution.
Answer the following scenario thoroughly utilizing key terms and concepts covered in the previous units reflecting full understanding of the concept of macro economics as it relates to the scenario described. Provide examples and clear rationaliza..
Think a competitive industry consisting of one hundred identical firms each with the following cost schedule,
The Arena Corporation, which sells engines, has a uniform value of $500, which is charges all its consumers. But, after its competitors begin to cut their rates in the California market to $400, Arena decrease its price to $400.
BP did not own the deepwater horizon platform, but leased it from a company called Transocean. Would BP have paid more attention to safety if it owned,
Complete the constraints for a 2-year crop rotation between oats and barley in the homestead paddock and complete the constraint for turnip and millet production in the South Hill paddock
Smart University of Lafayette Indiana is a C.E.D. division of Smart University located in Gary Indiana. SU's goal is to maximize profits.. SU is currently maximizing the profit at SU of Lafayette by charging the profit-maximizing tuition rate. T..
Assume that securitization combined with borrowing and irrational exuberance in Hyperville have driven up the value of existing financial securities at a geometric rate, specifically from $4 to $8 to $16 to $32 to $64 to $128 over a six-year time ..
why is it so certain that price elasticity will cause those prices to return to levels they were at instead of staying lower based on the new technology?
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