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a) Please explain the difference between the collusive and competitive oligopoly models and explain the role that the number of firms and barriers to entry play in determining how real-world oligopolistic industries behave.
b) Show graphically and explain how a monopoly results in a deadweight loss. Also point out the redistribution that takes place in society because of monopoly. (*edit: You don't have to give graph if you do not know it, though it would be nice. I mainly need the explanation and to point out the redistribution that takes place)
Countries that choose to pursue a fixed exchange rate have less or more flexibility to pursue monetary policies in line with domestic goals. A decrease in U.S. exports to Mexico will cause the supply of pesos in the foreign exchange market to increas..
An increase in the market price of men's haircuts, from $15per haircut to $25 per haircut, initially causes a local barbershop to have its employees work over time to increase the number of daily haircuts provided from 35 to 45. What is the short-run..
Machine A costs $20,000, lasts 3 years and has a salvage value S of $3,000. Machine B costs $12,000, lasts 2 years and has a salvage value of $2,000. The machines can be purchased at the same price with the same salvage value in the future, and are n..
Consider an economy with its production possibilities represented by the function Y = A √ K √ L where Y represents total output (i.e GDP), K is capital, L is labor, and A is total factor productivity (TFP). This economy devotes a share of 30% of its ..
Write down a health production function that depends on the two inputs: quantity of medical care and hours of exercise. That is, provide the functional form along with either numerical values of parameters, or (at a minimum) signs of the parameters o..
Two countries, Canada and Japan, produce two goods, Phones (P ) and Phone Apps (A), using two factors, Skilled labor (S) and Unskilled labor (U). Phones are Skilled-labor intensive and Apps are Unskilled-labor intensive. Which country is Skilled-labo..
q1. why may vertically integrated delivery systems lead to lower productions costs? why may these systems lead to
To determine how well an investment is doing, it is important to take into account its return and risk. Rational investors seek to obtain the highest amount of return from an investment with the least amount of risk. What are the similarities and dif..
A justification for job training programs is that they improve worker productivity. Suppose that you are asked to evaluate whether more job training makes workers more productive. However, rather than having data on individual workers, you have acces..
If shoes and socks are complements and both are normal goods, show graphically what would happen to the consumption of shoes and socks if the price of shoes decreased. consumer incomes increased.
Five annual deposits in the amounts of $7,500, $6,000, $4,500, $3,000, and $1,500, in that order, are made into a fund that pays interest at a rate of 8% compounded annually. Determine the amount in the fund immediately after the fifth deposit.
Use the concept of the hydrologic cycle to explain how contamination of surface waters can also cause degradation of groundwater.
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