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Answers to each of the following problems will be evaluated based on accuracy, completeness and clarity. Unsupported answers will receive no credit. Any assumptions you make in answering the questions below should be clearly stated.
1. True, false, or uncertain: If some firms in an industry have high marginal costs, cH, and others have low marginal costs, cL < cH , then a merger between two low-cost firms is always more profitable than the merger between a low-cost and a high-cost firm.
2. A monopoly sells to consumers with inverse demand given by p(Q) = 100 - Q and technology T C(Q) = 5Q. Characterize the firm's profit-maximing behaviour when they are permitted to set a two-part tariff.
the new chief executive officer ceo of your company is a strong believer in the four functions of management theory. in
Malaysia experienced sugar shortages a few years back. Goverment wanted to provide relief to the public through price control. What are the economics implications of such a move? (Use the concept of equilibrium price)
Which one, shirts or sweaters, has a demand elasticity that will allow you to increase the price, sell fewer units BUT still increase your revenues?
Briefly explain and illustrate how the unemployment rate and labor force participation rate relate to the production possibilities frontier. Give several examples of demographics, cultural, or personal decisions that might change the LFPR.
Prepare a 3-4 page essay that summarizes how microeconomics affects your chosen company.
Do you think normal market forces adequately promote the sustainable development of non-renewable resources?
A material handling system was purchased 3 years ago for $120,537. Two years ago it required substantial upgrading at a cost of $14,340. It once again is requiring an upgrading cost of $24,925. Alternately, a new system can be purchased today at a co..
describe the graphical relationship between ticket prices and the number of people choosing to visit amusement parks.
Fiscal policy advisor Jones wants to increase aggregate demand while monetary policy advisor Smith wants to reduce aggregate demand. Which of the following combinations of fiscal and monetary policies would there two advisors suggest to achieve their..
one is to convert the actually a nominal gdp number to a real gdp number. the other is to convert a nominal gdp growth
explain the following statement changes in disposable income lead to movements along the consumption function while
as part of a study for the department of labor statistics you are assigned the task of evaluating the improvement in
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