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During the energy crisis of the 1970s, and again in the last 5 years, Congress bemoaned the “price gouging” and “windfall” profits of the major oil companies. In the 1970s Congress imposed an “excess profits tax” on these companies. It did not do so this time? What does this change show about how our understanding of the way the price system works to allocate resources has evolved? If “excess profits” are taxed away, where will oil companies get the money to fund new exploration and development of oil properties? Does it matter if these price increases are demand or supply induced?
In an oligopolistic market, firms pay close attention to the strategies of their rivals. In monopolistic competition with a large number of sellers, it is assumed that there is not this kind of rivalry, or interdependence. Why is there a probably ..
Examining the current market situations of "Starbucks" competition can take many forms. value competition includes collusion, price leadership, loss leaders, price discrimination.
Airline fares are bigger in summer than in winter. Some railroads charge lower fares during week than on weekends. Electric firms charge customers lower rates the more electricity they use.
Suppose the long-run total cost function for any firm in an industry is given by the cubic equation. TC=a+bq+cq^2+dq^3. Show (using calculus) that this total cost function is consistent with a U-shaped average cost curve for at least some values of a..
consider a simple two person economy in which the two citizens curly and moe can produce two different goods butter and
A Restrictive monetary policy by the Fed must lead to: A primary goal of monetary policy is to: The major tools of monetary policy available to the Federal Reserve System involve: When the Federal Reserve uses open market operations (OMO) in an expan..
assignment achoose one of the following assignment topics. answer each question 1 2 3 separately rather than answering
you are the chief economic advisor of the president of dreamland. right now the country has unemployment of 7.7 . the
in other markets price is pretty important to consumers and suppliers. is this true in healthcare? why or why not?
choose an industry you have not yet written about in this course and one publicly traded corporation within that
When international hostilities increase, the United States government will sometime use trade sanctions instead of military action.
Beachfront resorts have an inelastic supply, and automobiles havean elastic supply. Suppose that a rise in population doubles thedemand for both products (that is, the quantity demanded at eachprice is twice what it was.)
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