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The US Federal Trade Commission justifies their record of approval of most mergers by asserting that even though competition is diminished by consolidating two firms into one, mergers actually benefit
a. competition and consumers by forcing firms to lower consumer pricing
b. competition and consumers by allowing firms to operate more efficiently
c. competition and consumers in the short-run
d. competition and consumers at the outset
Do you agree or disagree with the following statement? "Politicians would make more rational economic decisions if they weren’t running for re-election every few years.” Are there any benefits of making politicians go up for re-election?
What role does rational self-interest play in economic analysis?
q.illustrate the effect on the marketplace for a hr. of babysitting services 30 yrs into the future when children born
Use Appendix A at the back of the text to show the compound annual rate of growth in earnings (n=4).
The payoff to a company that enters is its gross profit minus its entry cost, while the payoff to a company that does not enter is 60. Find a symmetric Nash equilibrium in mixed strategies.
Compute the arc price elasticity of demand for the price of paperback books falling from $7.00 to $6.50, the quantity demanded rises from 100 to 150.
Would you agree with Karl Marx in saying that the Industrial Revolution and its capitalistic foundations negatively affected the working classes?
Suppose you consume nothing but goods X and Y. We have two years.
Illustrate what is the fed funds rate in the banking system. Explicates howthe Fed manipulates this rate in order to achieve macroeconomic objectives.
Illustrate what happens to the demand for beer if the price of soda falls by 2%. What happens to the demand for beer if consumer income rises by 5%. Be specific.
Explicates how the factors determining resource demand differ from those determining product demands.
Can the government make things worse by intervening in markets? Are there other options outside the markets and government that will fix macroeconomic failure?
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