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Zelda Industries is the only firm of its kind in the world. Due largely to historical accident, it began producing streganomas in 1985 in a vacant warehouse. Virtually anyone with a degree in college chemistry could easily replicate the firm's formula, which is not patent protected. Nonetheless, since 1985 Zelda has averaged accounting profits of 6 percent on investment. This rate is comparable to the average interest rate that large banks paid on deposits over the period.
a) Do you think Zelda is earning monopoly profits? Why?
b) Explain why the presence or lack of profits might exist.
large-scale wars typically bring a suspension of international trading and financial activities. exchange rates lose
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a use the following data to construct a production possibility curve for a hypothetical
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An industry contains two firms, one whose cost function is c(y1)=y1^2 and another whose cost function is c (y2)=30y^2. The demand function they face is p=(120-(y1+y2)) a) find the output and profit for each in a nash equilibrium. b) Find total output..
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Examined the statistics for our basketball team"s wins last year and found that, when the third team played more, the winning margin increased. If the coach played the third team more, we would win by a bigger margin.” Evaluate this statement.
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What is the Marginal Rate of Technical Substitution between labor and capital and what is the least cost method of producing the target level of output
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