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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.
Also the economy has G = $1100, I = $404, and XN = $15. Unemployment in the economy is currently 5.2% and inflation is 0.1%
decide how line is too long and leave without getting into line. Assume that no car that actually chooses to enter line leaves without service.
Assume you are compiling your research report. How would you present the statistical information within this case to the IndustryWeek decision maker, the manager who must decide whether or not to continue to publish reader service cards?
President Bill Clinton assigned his wife to task of developing a national health insurance plan to increase availability of medical care for poor. How would one determine opportunity cost of proposal.
What geographic area would the market area typically considered be? How would quantity demanded and the price of this product be measured?
q.a can of soda costs 0.75 in the united states and 12 pesos in mexico. what would the peso- dollar exchange rate be if
What would happen if the Free Zone in central bank lowered the federal funds rate and buy securities on the open market? b-recommends that the central bank sua or lower the federal funds rate? why?
Suppose an economy produces three goods (rice, bananas, and strawberries). Draw its PPF assuming constant opportunity costs, then draw it with increasing opportunity costs.
How would each of the subsequent affect Helena's hand basket supply of worker.
Distribution of costs and benefits of free trade. In other words, does everyone share in the gains and the costs equally? Competing with different labor restrictions (or lack of), such as slave or child labor. Differences in environmental standards.
Using the midpoint method, what is the cross price elasticity of the demand for apple juice with regard to the price of orange juice
Illustrate what would happens to the equilibrium price and quantity. The widget firm in Springfield is competitive,with numerous buyers and sellers.
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