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In a separate group discussion board, present two arguments. The first should argue in favor of the proposed merger, from the perspective of the firms. The second agrues against the proposed merger from the perspective of the broader public interest. In those arguments, answer the following questions.
Explain the importance of competition among firms.
Explain whether the competitive environment in this industry benefits society or not.
Is a high degree of market concentration a boon or threat to consumers? Explain. Use either the allocative efficiency or dynamic efficiency arguments.
Can the oligopoly market structure benefit both consumers and businesses by forging common standards in industries that experience rapid technological change?
Lars consumes only potatoes and herring. When the price of potatoes was 9 crowns per sack and the price of herring was 5 crowns per crock, he spent his entire income to buy 5 sacks of potatoes and 10 crocks of herring per month.
Give three reasons why firms produce in Germany rather than in a lower-wage country.
As manager of Citywide Racquet Club, you must estimate best price to charge for locker rentals. Assume that the (marginal) cost of providing lockers is 0.
Elucidate from a financial point of view why a firm might want to stay in business in the short run when total revenue is below total costsElucidate from a financial point of view why a firm might want to stay in business in the short run when tota..
Suppose 10% of all workers are of high ability. If a firm knows a worker's ability, workers of low ability are paid $20,000 and workers of high ability are paid $30,000. Obtaining a university degree can signal high ability, and the cost of degr..
Assume that your firm above is the N.Y. Yankees and the league owners impose a lump sum tax of $4 million dollars on your firm.
You can lease the similar piece of equipment, delivered and installed, for an all-in cost of $65,000 per year, for three years, payable at the beginning of each year.
Construct a graph showing supply and demand in the electronic dog feeder market and how are the laws of supply and demand illustrated in this graph? Explain your answers.
A good stock-based mutual fund should earn at least 10% per year over a long period of time. Consider the case of Barney and Lynn, who were overheard gloating (for all to hear) about how well they had done with their mutual fund investment.
Stating curves so that the quantity demanded & quantity supplied are both functions of price, putting value on horizontal axis. There is more than one demand curve, but all have a slope of -5.
Suppose the demand for artificial tanning is very elastic, while the demand for sugary soda is not. Compare the effects of two equal sized taxes on the equilibrium market price, the equilibrium quantity consumed, and the tax revenue raised.
The economy is initially in long-run equilibrium. The AD curve shifts to the right and the price level rises. Assuming that the economy is self-regulating, the SRAS curve will shift to the left and the price level will rise even further.
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