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For many years, AT&T was a regulated monopoly, providing both local and long-distance telephone service.
a. Explain why long-distance phone service was orginally a natural monopoly.
It has been proposed that toll collection on the Massachusetts Turnpike, a key commuter route into Boston from the west, be discontinued. Proponents argue that tolls have long ago paid for the cost of building the road; now they just provide cash ..
Find the optimal level of inputs L* and K* that minimize the cost of producing Q0. What is the cost of production associated to L* and K*?
If price discrimination is feasible, which of these pricing approaches would you consider using market segmentation by location or time, two-part tariffs, limit pricing, penetration pricing.
Calculation problems should be proven by showing the process you used or the formula you applied to solve the problem.
Argue that the main goal of a firm in a market economy is to maximize profit shareholder wealth over the long term. How might this impact stock price in the short term.
Illustrate what will happen to the input prices wages (w) and rental rate of capital (r) after this change in technology.
the government needs to reduce smoking by 20%, by how much should it increase the price.
Business if it was done by trade associations, certifications, and professional societies.
Suppose an economy only produces single consumption well. Consider permanent upward shift of production function. Graphically describe the effects on each of following:
Explain why does the US steel industry want a tariff on imported steel. Show the US steel market with and without a tariff, showing graphically why they will like a tariff.
Elucidate the tradeoff among current consumption and savings and how this impacts economic growth.
Your boss offers you a wage increase of 10 percent. Is it possible that you are worse off with the wage increase than you were before? Explain your answer using proper economic terms and analysis
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