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In many urban areas, the fast food industry is a common example of a market that is monopolistically competitive. Are there any barriers to entry for potential firms that might wish to enter the fast food industry? Also, what are the prospects for a new fast food restaurant to earn profit? Explain your answer.
What cost does an impact industry pay for capital. What is the total price of producing 120,180, and 240 units of output in the long run.
A supermarket expects to sell 5000 boxes of rice in a year. Each box costs $2, and there is a fixed delivery charge of $50 per order. If it costs $2 to store a box for a year, what is the order size and how many times a year should the orders be plac..
Suppose you are asked to find the profit maximizing level of output at a plant. You can sell as many units as you want for $200 per unit. How many machines and labor should you use? How much will you produce, and what will be the plant profits given ..
Analyze the different stakeholders (i.e., government, three (3) affected parties) that are involved in the externality, and identify what their roles are with regard to the externality.
A business traveler to Germany who, upon deplaning in Berlin, uses an airport ATM to withdraw 100 Euros from her U.S. bank would receive which kind of exchange rate?
You have $1,000, which you can invest in a risk-free investment, earning 2% with certainty. Alternatively, you can invest in a project that has a 30% chance of losing $500, and a 70% chance of gaining $400. What is your expected wealth with each inve..
In competitive equilibrium, what is the ratio of the price of bananas to the price of tomatoes. Illustrate what is the equilibrium quantity of bananas and tomatoes consumed by Marilyn and Chen.
What do you make of Rawl's assertion that "... social and economic inequalities, for example inequalities of wealth and authority, are just only if they result in compensating benefits for everyone, and in particular for the least advantaged members ..
In 2015, the U.S. federal government increased government spending (G) by $56 billion. This question has you both illustrate and explain the short- and long-run effects of these fiscal adjustments.
Does the patent system encourage duplicative efforts solely for the chance to be first.
Per capita GDP in the long run: Suppose an economy begins in steady state. By what proportion does per capita GDP change in the long run in response to each of the following changes?
You manage a resort and are considering installing one of two different vending machines, Soda or Candy. The net cash flow for each machine stays the same for each of the four years that it lasts. Key information about each machine is below. Cash flo..
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