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The U.S. Postal Service is a monopoly provider of first-class mail delivery (other companies such as UPS and FedEx can deliver packages, but not first-class mail). Do you think this is an example of a cost-based monopoly, or is there some other explanation?
"When the firms in a perfectly competitive industry are just able to cover their cost of production, economic profit is zero. Therefore, if demand falls, causing prices to go down even a little bit, all of the firms in the industry will immediately s..
Two oligopoly company are in the process of estimating their marketing strategies. Firm 1 can generate estimated profits of $10 million from strategy A
Congress's budget for the coming year includes a spending projection of $4.2 billion. Tax revenue projects $3.8 billion. Which fiscal policy would Congress have to adopt to maintain spending levels without increasing the debt?
If a fixed number of industrial polution permits are marketable; then we should just sell the right to smoke to highest bidders rather than ban smoking outright in many cities, restaurants, towns, business outlets, and bars.
Can you explain how FISCAL POLICY (making changes to government spending and taxes) would affect Aggregate Demand (AD) How do these two mechanisms of expansionary policy differ
The best Leisure John may get in a week is 168 hrs. Other than that how many hours a week John works, he gets a $200 allowance from his father.
Explain how will reduced smokers affect the GDP in the long and short run. What does increased revenue from cigarette taxes do to the deficit and budget.
From the perspective of any individual in this population, what is the reduction in the probability of their death in any year from this policy? (Assume everyone in the population uses the road equally. In reality, the fact that this is not true m..
President Obama recently agreed in December with Republicans in Congress to extend existing tax cuts that were scheduled to expire December 31 and to create new tax cuts as well. Meanwhile, recent reports suggest that the economy may expand more.
If the government were to give up in the war on drugs, the money supply would likely increase.
1. Draw the payoff matrix (note that Time Warner and District 6SW are the only ones in the market. 2. Based on the payoff matrix what recommendation would you give regarding whether Time Warner should maintain its current price or reduce it to $84..
Suppose two firms are competing in prices (Bertrand) in an industry where demand is p=200-4Q. (a) If both firms have MC=120, what is the equilibrium quantity for each firm? Profits?
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