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What is monopolistic competition and why/where is it different from perfect competition?
Explore how firms in monopolistic competition differentiate their products or services to generate a market niche and gain more control over their pricing.
Make an analysis by answering questions below. Suppose that the Bank of Ecoville has the following balance sheet and the Fed has a 10% reserve requirement in place:
Consider a world of two countries; Highland (H) and Lowland (L). Each country has an average output of 9 and desires to smooth consumption. All income takes the form of capital income and is fully consumed each period. There are two states of the ..
Explain why would you expect inflation rate to increase if the actual unemployment rate refused to a level lower than the "full employment" unemployment rate.
Rachel utility function is given by U= I 1/2 , where I represents annual income in thousands of dollars. Assume Rachel is currently earning income of $23,000 (I =23) and can earn that income next year with certainty.
Assume the new leadership in Congress decides to repeal some of the tax breaks granted to large businesses during the past several years.
A firm with costs C(Q) = 1,000 + 60Q + 0.1Q2 is able to price-discriminate-What would happen if it were forced to charge all its customers the same price?
The demand and supply curves for gasoline (in billions per year) are given below. Using the equations, find the initial equilibrium price and the quantity in the market for gasoline.
Wilpen Company, a price-setting firm, produces nearly 80 percent of all tennis balls purchased in the United States.
Elucidate how have these policies affected the prices of the product the industry produces?
What are at least three ways in which you would get help in this marketing campaign.
If consumer incomes rise to $30,000, illustrate what will be the new equilibrium price and the new equilibrium quantity.
Explain how do the principles of microeconomics which you have leaned in this course apply to other nations.
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