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A firm has $2.5 million in sales, a Lerner index of 0.67, and a marginal cost of $50, and competes against 800 other firms in its relevant market.
What price does this firm charge its customers? SHOW all work
By what factor does this firm mark up its price over marginal cost? SHOW all work
Do you think this firm enjoys much market power? Explain
Illustrate what is the ability to pay principle in public Fiance also what are some of the problems implementing it.
Suppose it is decided that rent control in New York City will be abolished and that market rents will now prevail. Assume that all rental units are identical and so are offered at the same rent. Use a diagram to show the effect on the rental market ..
consider the following islm model for a closed economyc4000.4yd i2000.3y-2000i g360t400 mp4y-100000ims2600 10
Governments get involved in the international flow of trade and foreign direct investment and regional economic integration is also influencing international business. Identify two market entry modes, and explain how each might be affected by the act..
When comparing perfect competition and monopoly, a major assumption made is that
Suppose you are the owner of a pizza restaurant operating in a competitive market. Your cost of production is given by TC (Q)= 500+9Q-7/2Q^2+1/3Q^3, where q is the number of pizzas and TC is the total cost. What is the variable cost of production, fi..
Assume a perfectly competitive firm is producing 300 units of output, P = $10, ATC of the 300th unit is $8, marginal cost of the 300th unit = $10, and AVC of the 300th unit = $6. Based on this information, the firm is:
Tamara's best friend, Janine, who had been having bad luck the past couple of years developing good relationships, finally meets the "man of her dreams." She has been dating him for several weeks. There is only one problem: this man is married. To fu..
Explain how total emissions can rise even though emissions per dollar of GDP substantially decline. Which of the two is more relevant for climate change? Why?
A monopolist produces a good at zero marginal cost. It knows that two equal sized subgroups exist in the market for its produce, but cannot differentiate between them by sight. Group I value quality of service highly. Why may these have been suggeste..
Reflect on the notion of fiscal union within the European Union. Why is it becoming necessary? Can it be achieved quickly enough to avert financial disaster within the trading bloc?
If the government decides that aggregate demand is excessive and is causing inflation, what options are open to it? What if the government decides that aggregate demand is too weak instead?
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