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Antitrust authorities at the Federal Trade Commission are reviewing your company’s recent merger with a rival firm. The FTC is concerned that the merger of the two rival firms in the same market will increase market power. A hearing is scheduled for your company to present arguments that your firm has not increased its market power through the merger. Can you do this? How? What evidence might you bring to the hearing?
Who benefits from a tariff or quota? Who loses? Why would domestic markets benefit from protectionist trade policies? How do protectionist trade policies affect a government’s wealth and fiscal policy?
Woodonia, the world's leading exporter of bespoke wooden furniture, produces the furniture at a per-unit cost of Q = P + 60 and the market demand is Q = 120 - P. Find and draw the domestic equilibrium. Find and draw the socially optimal equilibrium.
In 1995, several tax bills were debated in Congress that would have provided greater tax incentives for saving. (None were enacted.) If such saving incentives had been enacted, and had been successful, how would the consumption function have shifted?..
If the price of cheese is marked down during a sale by 20% and in response the quantity demanded (sales) increase from 30 packages to 45 packages what is the price elasticity of demand? Is demand elastic or inelastic?
Consider the utility-maximizing model in a two-good world, where our representative consumer has well-behaved preferences that result in smooth indifference curves that are convex to the origin.
Illustrate what is shop's sales mix Illustrate what is shop's break-even sales volume in dollars. Explain how many bicycles of each type must firm sell to earn a target net income of $50,000.
suppose there are 50 honey producers in the market. What is the equilibrium price of honey? How much profit does an individual producer make in a month?
Determine whether each of the following increases, decreases, or remains unchanged in the short run: the market interest rate, the quantity of money demanded, investment spending, aggregate demand, potential output, the price level, and equilibrium r..
Appalachian Coal Mining should minimize net cost by choosing that level of pollution
What criteria would you apply to determine where such a policy is or is not successful. Judging from your own stated criteria, was Japan's exercise successful. Why or Why not.
The annual cash flows have the following projections. Illustrate what is the internal rate of return.
Interest rate if no one else will give me a loan? Will I be better or worse off as a result of taking out this loan. How can you make a case for legalizing loan-sharking.
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