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Use the figure below, which shows the linear demand and constant cost conditions facing a firm with a high barrier to entry, to answer the next three questions.
Graph 1
a.The firm will earn economic profit of $1,250,000. Explain.
b. If the entry barrier is removed consumers will be better off because consumers will enjoy greater consumer surplus. Explain.
c.$625,000, the deadweight loss, is caused by the market power created by the high entry barrier. Explain.
Illustrate what role did the policies of various governments play in influencing the international expansion strategies of both McDonald's and Wal-Mart.
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Describe the international monetary system known as the Bretton Woods system, or the gold exchange standard that existed from the mid 1940s to the early 1970s.
Estimate t-statistics for each variable and elucidate Illustrate what inferences can be drawn from m. If R2 of this equation is 0.25, illustrate what inference can be drawn from it.
Homo sapiens production possibilities curve have shifted outward to the right much more rapidly than that of Neanderthals
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A industry is currently operating where the MC of the last unit produced = $84, and the MR of this unit = $70. What would you advise this firm to do.
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