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why is monopolistic competition inefficient? suppose that you counted the higher price the consumer pays for the monoplistically comptetive firm's product surplus, would that change the conclusion regarding the efficiency of monopolistic competition?
Write a brief report describing what shift factors of supply and/or demand might be at work and how you would label those factors. Conclude the report with your forecast of what would likely result one month after the publication of the article.
Is there a BOP equilibrium or a BOP deficit/surplus.What is the equilibrium level of GDP and the interest rate.
Law of Demand indicates that there is the inverse relationship between price and quantity, why does it matter which particular mix of price and quantity is selected?
You're in Management for IBX Steel Components. J. D. Brotsky is a top labor leader and just announced that her union will go on strike against management unless you grant the workers a significant pay raise.
Potato chip industry in Northwest was competitively structured and in long run competitive equilibrium; companies were receiving a normal rate of return and were competing in a monopolistically competitive market structure.
Which of the following is true about profit maximization for a perfectly competitive firm A)Firms continue to increase prices to gain higher profits B)A firm maximizes profit differently in the short run and the long run C)Firms can lower prices to g..
explain how rent seeking can lead to a drop in production of goods and services. What role might the underground economy play in lessening the drop in productive activities?
Think the market for personal computers. Assume that the demand is constant : the demand curve does not change. Predict the effects of the following changes on the equilibrium price of computers.
Suppose the demand for a product is given by P = 40 4Q. Also, the supply is given by P = 10 + Q.? assume that there is a $10 per unit excise tax levied on the consumers of the product?
Write down the household's budget constraints for period 1 and 2 and identify the current account.
Describe how price regulation may improve the performance of monopolies. In your answer distinguish between socially optimal pricing and fair return pricing.
After a holiday stores begin to offer temporary discounts for many goods. Can you explain why they offer the discounts What can we say is happening to the Demand or Supply curve for prices to come down What can we say about how consumers react t..
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