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A narrow definition of monopoly is that a firm has a monopoly if it can ignore the actions of all other firms. Under a broad definition, a firm has a monopoly if no other firms are selling a substitute close enough that the firm’s economic profits are competed away in the long run. If you were to own the only furniture store in a small town, would you be considered to have a monopoly?
A 50 percent increase in cigarette prices would cut overall consumption by 12.5 percent, with even greater declines in smoking among minorities and young adults, federal health experts said Thursday. The Centers for Disease Control and Prevention (CD..
Assume we are facing a recessionary gap (RG) of $20 million. Explain the tools the government has at its disposal to close the gap, using FISCAL policy and in what direction it would use them, given that we have a RG (increase, decrease?). Give the e..
In the 1990's, helped by desktop publishing software that proliferated during that time, the number of vintage baseball card forgeries flooded the market for vintage baseball cards. Dealers left the market for fear of purchasing a phony. What was the..
The link between the money market and the goods and services market exists through the impact of
Explain how the quantity of executives demanded, the quantity supplied, and executive pay will change based on the above statement.
To be useful, market segments must rate favorably on five key criteria. In the ________criterion, effective programs can be formulated for attracting and serving the segments.
What is the basic determinant of the Trans D and Asset D for money? Graph each? How is equilibrium in money market determined? What would the Fed do to combat inflation and fight a recession?
Bob’s Whole Catfish is a southern Alabama farm that operates in the perfectly competitive catfish farming industry. Bob’s short-run total cost curve is STC(Q)=400+2Q+0.5Q2 where Q is the number of catfish harvest per month. All of the fixed costs are..
Technology, including travel-driven technology, has made the world smaller. It has enabled the rapid exchange of ideas and information, further shrinking the world. This has also led to more porous borders with significant difficulty in ensuring safe..
A revolutionary new computer chip will be brought to the market in 6 months that will decrease the price of computers by 50%. Draw a graph and explain.
What effect will this have on the demand and supply of loanable funds? How will this affect the real interest rate and the quantity of investment?
The supply and demand curves are: Qs = -800 + 15p and Qd = 3200 - 25p. Solve for the market equilibrium. Now suppose a tax of $20 per unit is imposed on consumers. What are the new equilibrium quantity, buyer's price and seller's price? What is tax r..
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