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(a) What are differences between Cournot oligopoly outcome and monopoly outcome in terms of the equilibrium price and quantity?
(b) Explain why it is difficult to maintain a Cartel agreement (other than it is illegal).
(c) Explain the key differences between Cournot oligopoly, Bertrand oligopoly, and Stackelberg oligopoly.
What is meant by cause-in-fact? Explain how the logic of cause-in-fact does not always make economic sense. Why is it that in manufacturing and medicine the legal rule is generally strict liability?
q.in a competitive market there are two groups of firms. in group a for each firm the long-run atc curve is u-shaped
Grocery stores and gas stations in a large city would appear to be examples of competitive markets. There are numerous, relatively small sellers, each seller is a price taker and the products are quite similar. Is is possible these markets are perfec..
Suppose that in a year an American worker can produce 100 shirts or 20 computers and a Chinese worker can produce 100 shirts or 10 computers. Explain at what price of computers (in terms of shirts) the two countries might trade.
Explain why oligopolists have an incentive to collude or form a cartel and Explain why oligopolists in a collusive agreement might have an incentive to renege on such an agreement.
Zara, a clothing manufacturer and retailer based in Spain, is unique for providing just-in-time low-cost fashion. The company designs new collections in only four or five weeks, quickly reacting to trends, such as what is stylish on a music video, in..
In what ways do you think their behavior would differ from comparable doctors in a not-for-profit hospital in the US?
Case Study - Technology and Economic Change and what are the causes of economic growth in potential output in the long-term? Apply the theory to illustrate and explain your answer with an example.
Indentured servitude is no longer legal. An indenture was a contract binding a person to work for another for a given length of time (usually for many years), as an apprentice to a master or an immigrant to service in a colony. Such a relationship wa..
The decline in cigarette sales was estimated at 8 percent. What does this imply for the elasticity of demand for cigarettes? Explain?
Find the monopolist's profit-maximizing output and price - calculate the monopolist's profit and what is the Lerner Index for this industry?
“The Mexican arm of U.S. Internet giant America Online Inc. said on Wednesday it started a financing program to help aid in the purchase of personal computers, joining a list of companies that have launched similar programs to promote Internet use. W..
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